Head-To-Head Analysis: Reed’s (REED) vs. The Competition

Reed’s (NASDAQ:REEDGet Rating) is one of 18 public companies in the “Bottled & canned soft drinks” industry, but how does it weigh in compared to its peers? We will compare Reed’s to related companies based on the strength of its risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Reed’s has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Reed’s’ peers have a beta of 1.10, suggesting that their average share price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Reed’s and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Reed’s $49.60 million -$16.40 million -1.67
Reed’s Competitors $5.72 billion $412.51 million -100.91

Reed’s’ peers have higher revenue and earnings than Reed’s. Reed’s is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

30.8% of Reed’s shares are owned by institutional investors. Comparatively, 51.0% of shares of all “Bottled & canned soft drinks” companies are owned by institutional investors. 9.3% of Reed’s shares are owned by insiders. Comparatively, 17.2% of shares of all “Bottled & canned soft drinks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Reed’s and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reed’s 0 0 2 0 3.00
Reed’s Competitors 216 760 1020 36 2.43

Reed’s presently has a consensus target price of $1.05, indicating a potential upside of 269.72%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 34.65%. Given Reed’s’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Reed’s is more favorable than its peers.

Profitability

This table compares Reed’s and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reed’s -33.07% -187.58% -67.39%
Reed’s Competitors 3.91% 0.12% 2.03%

Summary

Reed’s peers beat Reed’s on 8 of the 13 factors compared.

Reed’s Company Profile (Get Rating)

Reed’s, Inc. engages in the provision of carbonated and non-carbonated beverages. Its product lines include Reed’s Ginger Brews, Virgil’s Root Beer, and Flying Caldron Butterscotch Beer. The company was founded by Christopher J. Reed in June 1987 and is headquartered in Norwalk, CT.

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