Critical Comparison: Reeds (OTCMKTS:REED) versus Jammin Java (OTCMKTS:JAMN)

Jammin Java (OTCMKTS:JAMN) and Reeds (OTCMKTS:REED) are both small-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Risk & Volatility

Jammin Java has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Reeds has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Insider and Institutional Ownership

51.5% of Reeds shares are owned by institutional investors. 18.2% of Jammin Java shares are owned by insiders. Comparatively, 0.3% of Reeds shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Jammin Java and Reeds”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jammin Java	N/A	N/A	-$230,000.00	N/A	N/A
Reeds	$36.32 million	0.79	-$13.15 million	($7.32)	-0.44

Jammin Java has higher earnings, but lower revenue than Reeds.

Profitability

This table compares Jammin Java and Reeds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jammin Java	N/A	N/A	N/A
Reeds	-42.48%	-358.36%	-59.26%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Jammin Java and Reeds, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jammin Java	0	0	0	0	0.00
Reeds	0	0	1	0	3.00

Reeds has a consensus price target of $10.50, suggesting a potential upside of 227.10%. Given Reeds’ stronger consensus rating and higher possible upside, analysts plainly believe Reeds is more favorable than Jammin Java.

Summary

Jammin Java beats Reeds on 6 of the 11 factors compared between the two stocks.

About Jammin Java

Jammin Java Corp. produces and sells roasted coffee under the Marley Coffee brand name in the United States and internationally. It distributes roasted coffee to grocery, retail, online, service, hospitality, office coffee service, and big box store industries. The company was formerly known as Marley Coffee Inc. and changed its name to Jammin Java Corp. in July 2009. Jammin Java Corp. was founded in 2004 and is headquartered in Denver, Colorado.

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.