Contrasting Blue Gem Enterprise (OTCMKTS:BGEM) and Reeds (OTCMKTS:REED)

Reeds (OTCMKTS:REED) and Blue Gem Enterprise (OTCMKTS:BGEM) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Valuation and Earnings

This table compares Reeds and Blue Gem Enterprise”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reeds	$34.07 million	1.30	-$13.15 million	($1.28)	-2.94
Blue Gem Enterprise	N/A	N/A	N/A	N/A	N/A

Blue Gem Enterprise has lower revenue, but higher earnings than Reeds.

Analyst Recommendations

This is a breakdown of recent recommendations for Reeds and Blue Gem Enterprise, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reeds	0	0	1	1	3.50
Blue Gem Enterprise	0	0	0	0	0.00

Given Blue Gem Enterprise’s higher probable upside, analysts clearly believe Blue Gem Enterprise is more favorable than Reeds.

Profitability

This table compares Reeds and Blue Gem Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reeds	-42.48%	-358.36%	-59.26%
Blue Gem Enterprise	N/A	N/A	N/A

Institutional and Insider Ownership

51.5% of Reeds shares are owned by institutional investors. 0.3% of Reeds shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Reeds beats Blue Gem Enterprise on 6 of the 10 factors compared between the two stocks.

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.

About Blue Gem Enterprise

Blue Gem Enterprise, Inc., through its subsidiaries, engages in full service direct store beverage distribution activities in Florida, the United States. The company manages and distributes select allied brands, including the Title Sports Drink for food and beverage manufacturers pursuant to exclusive agreements with manufacturers. It distributes various non-alcohol beverages, such as ice teas, juices, nutritional shakes, energy shots, and sports drinks, as well as food products. The company also distributes refrigerated dairy products, fresh produce, and food and beverages, including milk; fruits, such as watermelon; nut and snack bars under the Wings of Nature Bars brand name; Apple Rush, an apple flavored fruit beverage; Xingtea, a tea beverage; and Myoplex, a shake. It serves independent retail stores and chain stores. Blue Gem Enterprise, Inc. is based in Opa-locka, Florida.