Contrasting Reeds (OTCMKTS:REED) and Pernod Ricard (OTCMKTS:PDRDF)

Pernod Ricard (OTCMKTS:PDRDF) and Reeds (OTCMKTS:REED) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Pernod Ricard and Reeds, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pernod Ricard	2	0	0	0	1.00
Reeds	0	0	0	1	4.00

Profitability

This table compares Pernod Ricard and Reeds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pernod Ricard	N/A	N/A	N/A
Reeds	-42.48%	-358.36%	-59.26%

Earnings & Valuation

This table compares Pernod Ricard and Reeds”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pernod Ricard	N/A	N/A	N/A	C$3.82	21.10
Reeds	$29.14 million	0.48	-$13.15 million	($1.59)	-0.75

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

Insider & Institutional Ownership

39.1% of Pernod Ricard shares are owned by institutional investors. Comparatively, 51.5% of Reeds shares are owned by institutional investors. 0.0% of Reeds shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

About Pernod Ricard

Pernod Ricard SA produces and sells wines and spirits worldwide. The company offers whiskey, vodka, gin, rum, liqueur and bitters, champagne, tequila and mezcal, and aperitif under the brands 100 Pipers, Aberlour, Absolut, Absolut Elyx, Altos, ARARAT, Augier, Avion, Ballantine's, Becherovka, Beefeater, Blenders Pride, Brancott Estate, Campo Viejo, Ceder's, Chivas, Church Road, Clan Campbell, Del Maguey, George Wyndham, Green Spot, Havana Club, Imperial, Imperial Blue, Italicus, J.P. Wiser's, Jacob's Creek, Jameson, Jefferson's, Kahlúa, Kenwood, KI NO BI, Lillet, Long John, L'Orbe, Lot No. 40, Malfy, Malibu, Martell, Method & Madness, Midleton Very Rare, Minttu, Monkey 47, Mumm, Olmeca, Ostoya, Passport Scotch, Pastis 51, Pernod, Perrier-Jouët, Plymouth Gin, Powers, Rabbit Hole, Ramazzotti, Redbreast, Ricard, Royal Salute, Royal Stag, Scapa, Seagram's Gin, Secret Speyside, Smooth Ambler, Something Special, St Hugo, Stoneleigh, Suze, The Glenlivet, TX, Wyborowa, and Ysios. It also provides non-alcoholic beverages under the brands Ceder's, Suze Tonic 0%, Cinzano Spritz 0%, Pacific, Campo Viejo Sparkling 0%, and Jacob's Creek Unvined. Pernod Ricard SA was founded in 1805 and is headquartered in Paris, France.

About Reeds

Reed's, Inc. engages in the manufacture and distribution of natural beverages in the United States. The company offers Reed's craft ginger beer; Reed's real ginger ales; Reed's Classic Mules; Reed's Hard Ginger Ale; Reed's ready to drink products; and Virgil's handcrafted sodas. It sells its products to natural food and gourmet retailers, grocery store chains, mass merchants, club stores, convenience and drug stores, liquor stores, industrial cafeterias, and on-premise bars and restaurants, as well as directly to consumers through www.drinkreeds.com. 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 headquartered in Norwalk, Connecticut.