Reeds (OTCMKTS:REED – Get Free Report) and Vita Coco (NASDAQ:COCO – Get Free Report) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Insider and Institutional Ownership
51.5% of Reeds shares are held by institutional investors. Comparatively, 88.5% of Vita Coco shares are held by institutional investors. 88.0% of Reeds shares are held by company insiders. Comparatively, 34.2% of Vita Coco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Reeds and Vita Coco, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reeds | 0 | 0 | 1 | 0 | 3.00 |
| Vita Coco | 0 | 3 | 5 | 0 | 2.63 |
Risk and Volatility
Reeds has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, Vita Coco has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.
Profitability
This table compares Reeds and Vita Coco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reeds | -43.28% | N/A | -69.61% |
| Vita Coco | 11.50% | 24.99% | 17.84% |
Valuation & Earnings
This table compares Reeds and Vita Coco”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reeds | $37.95 million | 1.30 | -$13.15 million | ($1.22) | -0.83 |
| Vita Coco | $516.01 million | 4.25 | $55.95 million | $1.07 | 36.07 |
Vita Coco has higher revenue and earnings than Reeds. Reeds is trading at a lower price-to-earnings ratio than Vita Coco, indicating that it is currently the more affordable of the two stocks.
Summary
Vita Coco beats Reeds on 11 of the 14 factors compared between the two stocks.
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.
About Vita Coco
The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company offers coconut oil and coconut milk; juice; Runa, a plant-based energy drink; packaged water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. It also provides private label coconut water and oil to retailers. It distributes its products through club, food, drug, mass, convenience, e-commerce, and foodservice channels. The company was formerly known as All Market Inc. and changed its name to The Vita Coco Company, Inc. in September 2021.The Vita Coco Company, Inc. was incorporated in 2004 and is headquartered in New York, New York.
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