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

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

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% -216.23% -66.05%
Reed’s Competitors 3.77% -2.77% 2.05%

Institutional & Insider Ownership

36.0% of Reed’s shares are owned by institutional investors. Comparatively, 51.4% 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, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Reed’s and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reed’s 0 0 2 0 3.00
Reed’s Competitors 217 764 1023 36 2.43

Reed’s currently has a consensus price target of $1.05, suggesting a potential upside of 325.45%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 36.88%. Given Reed’s’ stronger consensus rating and higher possible upside, analysts plainly believe Reed’s is more favorable than its rivals.

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

Valuation & Earnings

This table compares Reed’s and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Reed’s $49.60 million -$16.40 million -1.45
Reed’s Competitors $5.73 billion $412.20 million -99.02

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.

Summary

Reed’s rivals 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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