Reed’s (REED) & The Competition Critical Review

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 peers? We will compare Reed’s to related businesses based on the strength of its earnings, dividends, institutional ownership, valuation, risk, profitability and analyst recommendations.

Volatility and Risk

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

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 -99.19

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.

Analyst Ratings

This is a summary of current ratings 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 currently 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 34.37%. Given Reed’s’ stronger consensus rating and higher probable upside, equities 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%

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

Summary

Reed’s peers 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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