Reed’s (REED) & Its Competitors Critical Contrast

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

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%

Analyst Ratings

This is a summary 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 216 763 1021 36 2.43

Reed’s currently has a consensus price target of $1.05, suggesting a potential upside of 337.50%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 33.42%. Given Reed’s’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Reed’s is more favorable than its peers.

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’ peers have a beta of 1.10, meaning that their average share price is 10% more volatile than the S&P 500.

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, 17.0% of shares of all “Bottled & canned soft drinks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments 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 -1.41
Reed’s Competitors $5.73 billion $413.32 million -103.10

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.

Summary

Reed’s peers 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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