Head-To-Head Review: Reed’s (REED) versus Its Competitors

Reed’s (NASDAQ:REEDGet Rating) is one of 18 publicly-traded companies in the “Bottled & canned soft drinks” industry, but how does it weigh in compared to its competitors? We will compare Reed’s to similar businesses based on the strength of its risk, valuation, dividends, profitability, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

30.8% of Reed’s shares are held by institutional investors. Comparatively, 51.0% of shares of all “Bottled & canned soft drinks” companies are held by institutional investors. 9.3% of Reed’s shares are held by insiders. Comparatively, 17.0% of shares of all “Bottled & canned soft drinks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

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

Profitability

This table compares Reed’s and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reed’s -33.07% -187.58% -67.39%
Reed’s Competitors 3.91% 0.12% 2.03%

Valuation and Earnings

This table compares Reed’s and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Reed’s $49.60 million -$16.40 million -1.49
Reed’s Competitors $5.73 billion $413.32 million -101.40

Reed’s’ competitors have higher revenue and earnings than Reed’s. Reed’s is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations for Reed’s and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reed’s 0 0 2 0 3.00
Reed’s Competitors 216 762 1021 36 2.43

Reed’s currently has a consensus price target of $1.05, suggesting a potential upside of 315.02%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 34.42%. Given Reed’s’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Reed’s is more favorable than its competitors.

Summary

Reed’s competitors 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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