Reed's (NYSE:REED – Get Rating) and PepsiCo (NYSE:PEP – Get Rating) are both consumer defensive companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Volatility and Risk
Reed's has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.
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Valuation and Earnings
This table compares Reed's and PepsiCo's top-line revenue, earnings per share (EPS) 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) | -0.43 |
PepsiCo | $86.39 billion | 2.75 | $8.83 billion | $6.41 | 26.93 |
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 current ratings for Reed's and PepsiCo, as reported 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 |
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 |
Insider & Institutional 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
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 consists of branded convenient food businesses in the United States and Canada. 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 offers beverage, food, and snack goods in Europe and Sub-Saharan Africa regions. The AMESA segment deals with all beverage and convenient food businesses in Africa, the Middle East, and South Asia. The APA
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