Reed's (NYSE:REED – Get Rating) and PepsiCo (NYSE:PEP – Get Rating) are both consumer defensive companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.
Risk and Volatility
Reed's has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.
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Institutional & Insider Ownership
35.8% of Reed's shares are held by institutional investors. Comparatively, 70.8% of PepsiCo shares are held by institutional investors. 29.9% of Reed's shares are held by insiders. Comparatively, 0.1% of PepsiCo shares are held by 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.
Profitability
This table compares Reed's and PepsiCo's net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Reed's | N/A | N/A | N/A |
PepsiCo | N/A | N/A | N/A |
Earnings & Valuation
This table compares Reed's and PepsiCo's revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Reed's | $50.78 million | 0.20 | -$23.43 million | ($9.00) | -0.44 |
PepsiCo | $86.39 billion | 2.80 | $8.83 billion | $6.41 | 27.44 |
PepsiCo has higher revenue and earnings than Reed's. Reed's is trading at a lower price-to-earnings ratio than PepsiCo, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Reed's and PepsiCo, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Reed's | 0 | 0 | 0 | 0 | N/A |
PepsiCo | 0 | 0 | 0 | 0 | N/A |
Summary
PepsiCo beats Reed's on 6 of the 8 factors compared between the two stocks.
About Reed's
(Get Rating)
Reed's, Inc. engages in the manufacture and distribution of carbonated and non-carbonated beverages. Its product lines include Reed's Ginger Brews, Virgil's Root Beer, and Flying Caldron Butterscotch Beer. The company was founded by Christopher J. Reed in June 1987 and is headquartered in Norwalk, CT.
About PepsiCo
(Get Rating)
PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of beverages, food, and snacks. It operates through the following business segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), PepsiCo Beverages North America (PBNA), Latin America (LatAm), Europe, Africa, Middle East, and South Asia (AMESA), and Asia Pacific, Australia and New Zealand, and China Region (APAC). The FLNA segment markets, distributes, and sells snack foods under the Lay's, Doritos, Cheetos, Tostitos, Fritos, Ruffles, and Santitas brands. The QFNA segment includes cereals, rice, and pasta under the Quaker, Pearl Milling Company, Quaker Chewy, Cap'n Crunch, Life, and Rice-A-Roni brands. The PBNA segment is composed of beverage concentrates, fountain syrups, and finished goods under various beverage brands such as Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Diet Mountain Dew, Sierra Mist, and Mug. The LatAm segment covers beverage, food, and snack businesses in the Latin American region. The Europe segment includes beverage, food, and snack goods in Europe and Sub-Saharan Africa regions. The AMESA segment deals with all beverage and convenient food businesses in
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