Critical Contrast: Reed’s (REED) versus Its Peers

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Reed’s and its competitors, 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 34.37%. Given Reed’s’ stronger consensus rating and higher probable upside, analysts clearly believe Reed’s is more favorable than its competitors.

Valuation and Earnings

This table compares Reed’s and its competitors 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 -99.19

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

Risk and Volatility

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

Profitability

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

Summary

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

Reed’s Company Profile (Get Rating)

Reed's, Inc. develops, manufactures, and sells natural hand-crafted beverages in the craft specialty foods industry in the United States, Canada, Asia, Europe, Australia, and South America. Its products include Reed's craft ginger beers; Virgil's craft sodas; Ginger Candy; and Virgil's zero sugar sodas. Reed's, Inc. sells its products to natural food and gourmet retailers, grocery store chains, mass merchants, club stores, convenience and drug stores, liquor stores, industrial cafeterias, and on-premise bars and restaurants through distributors and independent distributor partners, as well as directly. The company was formerly known as Original Beverage Corporation and changed its name to Reed's, Inc. in 2001. Reed's, Inc. was founded in 1987 and is headquartered in Norwalk, Connecticut.

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