Reed’s (REED) & Its Rivals Financial Review

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

Institutional and Insider Ownership

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

Valuation and Earnings

This table compares Reed’s and its peers gross 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 $5.73 billion $412.51 million -99.21

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.

Volatility & Risk

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Reed’s and its peers, 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 presently has a consensus price target of $1.05, suggesting a potential upside of 269.72%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 34.60%. Given Reed’s’ stronger consensus rating and higher probable upside, analysts clearly 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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