Reviewing Reed’s (REED) and Its Peers

Reed’s (NASDAQ:REEDGet Rating) is one of 18 public 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 profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Analyst Ratings

This is a summary of recent recommendations for Reed’s and its peers, as provided 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 presently has a consensus target price of $1.05, indicating a potential upside of 332.10%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 36.34%. Given Reed’s’ stronger consensus rating and higher possible upside, analysts plainly 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% -216.23% -66.05%
Reed’s Competitors 3.77% -2.77% 2.05%

Earnings & Valuation

This table compares Reed’s and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Reed’s $49.60 million -$16.40 million -1.43
Reed’s Competitors $5.73 billion $412.20 million -101.57

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.

Volatility and Risk

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

Insider & Institutional Ownership

30.8% of Reed’s shares are owned by institutional investors. Comparatively, 50.9% 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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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