Reed’s (NYSE:REED – Get Rating) and Coca-Cola Consolidated (NASDAQ:COKE – 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, Coca-Cola Consolidated has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
Insider & Institutional Ownership
35.8% of Reed’s shares are held by institutional investors. Comparatively, 36.3% of Coca-Cola Consolidated shares are held by institutional investors. 29.9% of Reed’s 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.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reed’s | $50.78 million | 0.14 | -$19.22 million | ($8.99) | -0.30 |
| Coca-Cola Consolidated | $6.20 billion | 0.90 | $430.16 million | $45.77 | 12.97 |
Coca-Cola Consolidated has higher revenue and earnings than Reed’s. Reed’s is trading at a lower price-to-earnings ratio than Coca-Cola Consolidated, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Reed’s and Coca-Cola Consolidated’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reed’s | -36.23% | -12,036.32% | -59.55% |
| Coca-Cola Consolidated | 6.94% | 47.62% | 12.77% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Reed’s and Coca-Cola Consolidated, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reed’s | 0 | 0 | 0 | 0 | N/A |
| Coca-Cola Consolidated | 0 | 0 | 0 | 0 | N/A |
Summary
Coca-Cola Consolidated beats Reed’s on 9 of the 11 factors compared between the two stocks.
About Reed’s
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 Coca-Cola Consolidated
Coca-Cola Consolidated, Inc. engages in the production, marketing, and distribution of nonalcoholic beverages. Its products include sparkling and still beverages as well as energy products and noncarbonated beverages such as bottled water, tea, ready to drink coffee, enhanced water, juices, and sports drinks. It operates through the Nonalcoholic Beverages, and All Other segments. The company was founded by J. B. Harrison in 1902 and is headquartered in Charlotte, NC.
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