Head to Head Comparison: Reeds (NASDAQ:REED) vs. National Beverage (NASDAQ:FIZZ)

National Beverage (NASDAQ:FIZZ) and Reeds (NASDAQ:REED) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Institutional and Insider Ownership

24.8% of National Beverage shares are owned by institutional investors. Comparatively, 26.1% of Reeds shares are owned by institutional investors. 75.2% of National Beverage shares are owned by company insiders. Comparatively, 45.4% of Reeds shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

National Beverage has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Reeds has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for National Beverage and Reeds, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Beverage 2 3 2 0 2.00
Reeds 0 0 2 0 3.00

National Beverage presently has a consensus target price of $70.02, indicating a potential upside of 56.89%. Reeds has a consensus target price of $5.00, indicating a potential downside of 100.00%. Given National Beverage’s higher possible upside, equities analysts plainly believe National Beverage is more favorable than Reeds.

Profitability

This table compares National Beverage and Reeds’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Beverage 13.89% 38.40% 26.08%
Reeds -31.29% N/A -68.56%

Valuation and Earnings

This table compares National Beverage and Reeds’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Beverage $1.01 billion 2.05 $149.77 million $3.00 14.88
Reeds $38.10 million 33,639,303.10 -$10.32 million ($0.38) -100,692,105.26

National Beverage has higher revenue and earnings than Reeds. Reeds is trading at a lower price-to-earnings ratio than National Beverage, indicating that it is currently the more affordable of the two stocks.

Summary

National Beverage beats Reeds on 10 of the 13 factors compared between the two stocks.

National Beverage Company Profile

National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada. The company offers beverages to the active and health-conscious consumers, including sparkling waters, energy drinks, and juices under the LaCroix, LaCroix Cúrate, LaCroix NiCola, Shasta Sparkling Water, the Rip It, Everfresh, Everfresh Premier Varietals, and Mr. Pure brands; and carbonated soft drinks under the Shasta, Faygo, Red Pop, Moon Mist, and Rock'n'Rye brands. It serves retailers, as well as various smaller up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. National Beverage Corp. was founded in 1985 and is based in Fort Lauderdale, Florida. National Beverage Corp. is a subsidiary of IBS Partners, Ltd.

Reeds Company Profile

Reed's, Inc. develops, manufactures, markets, and sells natural hand-crafted beverages and candies in the United States, Canada, Asia, Europe, Australia, and South America. Its products include Reed's ginger beers; Virgil's root beer and cream sodas; Flying Cauldron Butterscotch Beer; and Sonoma Sparkler branded sparkling juices. The company also provides private label products. Reed's, Inc. sells its products to specialty gourmet, natural food stores, retail stores, convenience stores, 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 based in Los Angeles, California.

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