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

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

Volatility and Risk

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.

Insider & Institutional 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, 17.0% of shares of all “Bottled & canned soft drinks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Reed’s and its rivals 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 $5.73 billion $412.51 million -99.19

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%

Analyst Recommendations

This is a breakdown of current recommendations 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 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 34.37%. Given Reed’s’ stronger consensus rating and higher possible upside, equities analysts clearly 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. 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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