Reeds (NASDAQ:REED) and BRITVIC PLC/S (OTCMKTS:BTVCY) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Dividends

BRITVIC PLC/S pays an annual dividend of $0.38 per share and has a dividend yield of 1.8%. Reeds does not pay a dividend. BRITVIC PLC/S pays out 25.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings for Reeds and BRITVIC PLC/S, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reeds 0 0 2 0 3.00
BRITVIC PLC/S 0 1 1 0 2.50

Reeds presently has a consensus price target of $5.00, suggesting a potential upside of 47.93%. Given Reeds’ stronger consensus rating and higher possible upside, equities analysts plainly believe Reeds is more favorable than BRITVIC PLC/S.

Insider & Institutional Ownership

26.1% of Reeds shares are owned by institutional investors. 45.4% of Reeds shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Reeds has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, BRITVIC PLC/S has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Profitability

This table compares Reeds and BRITVIC PLC/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reeds -31.29% N/A -68.56%
BRITVIC PLC/S N/A N/A N/A

Valuation and Earnings

This table compares Reeds and BRITVIC PLC/S’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Reeds $38.10 million 2.97 -$10.32 million ($0.38) -8.89
BRITVIC PLC/S $2.02 billion 1.41 $157.52 million $1.50 14.41

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

Summary

Reeds beats BRITVIC PLC/S on 8 of the 15 factors compared between the two stocks.

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.

BRITVIC PLC/S Company Profile

Britvic plc, together with its subsidiaries, manufactures, markets, and distributes soft drinks primarily in the United Kingdom, the Republic of Ireland, France, and Brazil. It also provides fruit juices, syrups, liquid concentrates, ready-to-drink nectar drinks, sodas, mixers, energy drinks, and flavored water. The company's brand portfolio includes 7Up, Aqua Libra, Ballygowan, C&C, Club Mixers, Club Orange, DaFruta, Drench, Energise Sport, Fruit Shoot, Gatorade, J2O, Lipton, Maguary, MiWadi, Mountain Dew, Pepsi Max, Purdey's, R White's, Robinsons, Tango, Teisseire, TK, Fruité, Moulin de Valdonne, and Pressade. In addition, the company supplies water-coolers and bottled water; wholesales soft drinks to the licensed trade; and offers pension funding and financing services. It exports its products to approximately 50 countries. The company was incorporated in 2005 and is headquartered in Hemel Hempstead, the United Kingdom.

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