Reviewing Reed’s (REED) & Its Competitors

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

Earnings & Valuation

This table compares Reed’s and its rivals gross revenue, earnings per share 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’ rivals have higher revenue and earnings than Reed’s. Reed’s is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Reed’s and its rivals’ 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%

Institutional & 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 company insiders. Comparatively, 17.2% of shares of all “Bottled & canned soft drinks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Reed’s and its rivals, as provided by MarketBeat.

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 currently has a consensus target price of $1.05, suggesting 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 analysts plainly believe Reed’s is more favorable than its rivals.

Summary

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

About Reed’s (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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