Head-To-Head Review: Barfresh Food Group (NASDAQ:BRFH) vs. Reeds (OTCMKTS:REED)

Barfresh Food Group (NASDAQ:BRFH) and Reeds (OTCMKTS:REED) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Barfresh Food Group and Reeds, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barfresh Food Group	0	0	0	0	0.00
Reeds	0	0	1	0	3.00

Reeds has a consensus target price of $1.75, indicating a potential upside of 73.27%. Given Reeds’ stronger consensus rating and higher possible upside, analysts plainly believe Reeds is more favorable than Barfresh Food Group.

Institutional and Insider Ownership

22.7% of Barfresh Food Group shares are owned by institutional investors. Comparatively, 51.5% of Reeds shares are owned by institutional investors. 34.2% of Barfresh Food Group shares are owned by insiders. Comparatively, 88.0% of Reeds shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Barfresh Food Group has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Reeds has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Earnings & Valuation

This table compares Barfresh Food Group and Reeds”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barfresh Food Group	$10.72 million	4.33	-$2.83 million	($0.20)	-14.55
Reeds	$37.95 million	1.30	-$13.15 million	($1.22)	-0.83

Barfresh Food Group has higher earnings, but lower revenue than Reeds. Barfresh Food Group is trading at a lower price-to-earnings ratio than Reeds, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Barfresh Food Group and Reeds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barfresh Food Group	-27.38%	-176.38%	-74.25%
Reeds	-43.28%	N/A	-69.61%

Summary

Reeds beats Barfresh Food Group on 9 of the 14 factors compared between the two stocks.

About Barfresh Food Group

Barfresh Food Group, Inc., together with its subsidiaries, manufactures and distributes ready-to-drink and ready-to-blend frozen beverages in the United States. It offers smoothies, shakes and frappes in various formats comprising ready-to-drink smoothie, easy pour, juice concentrates, and single serve. The company was founded in 2009 and is based in Los Angeles, California.

About Reeds

Reed's, Inc. engages in the manufacture and distribution of natural beverages in the United States. The company offers Reed's craft ginger beer; Reed's real ginger ales; Reed's Classic Mules; Reed's Hard Ginger Ale; Reed's ready to drink products; and Virgil's handcrafted sodas. It 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, as well as directly to consumers through www.drinkreeds.com. 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.