Reed’s (NYSE:REED – Get Rating) and Celsius (NASDAQ:CELH – Get Rating) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Risk & Volatility
Reed’s has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Celsius has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Reed’s and Celsius, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insider & Institutional Ownership
35.8% of Reed’s shares are held by institutional investors. Comparatively, 67.5% of Celsius shares are held by institutional investors. 29.9% of Reed’s shares are held by insiders. Comparatively, 2.7% of Celsius shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Reed’s and Celsius’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Reed’s and Celsius’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Reed’s||$53.04 million||0.15||-$20.06 million||($8.99)||-0.33|
|Celsius||$653.60 million||15.01||-$187.28 million||($2.31)||-55.89|
Reed’s has higher earnings, but lower revenue than Celsius. Celsius is trading at a lower price-to-earnings ratio than Reed’s, indicating that it is currently the more affordable of the two stocks.
Celsius beats Reed’s on 10 of the 13 factors compared between the two stocks.
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.
Celsius Holdings, Inc. engages in the development, marketing, sale, and distribution of functional drinks and liquid supplements. It also offers post-workout functional energy drinks and protein bars. The company was founded in April 2004 and is headquartered in Boca Raton, FL.
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