Arca Continental (OTCMKTS:EMBVF – Get Free Report) and Reeds (OTCMKTS:REED – Get Free Report) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Arca Continental and Reeds, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arca Continental | 0 | 0 | 4 | 0 | 3.00 |
| Reeds | 0 | 0 | 0 | 1 | 4.00 |
Earnings & Valuation
This table compares Arca Continental and Reeds”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arca Continental | N/A | N/A | N/A | $3.86 | 2.95 |
| Reeds | $29.14 million | 0.39 | -$13.15 million | ($1.35) | -0.70 |
Arca Continental has higher earnings, but lower revenue than Reeds. Reeds is trading at a lower price-to-earnings ratio than Arca Continental, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
6.2% of Arca Continental 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, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Arca Continental and Reeds’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arca Continental | N/A | N/A | N/A |
| Reeds | -42.48% | -358.36% | -59.26% |
Summary
Arca Continental beats Reeds on 6 of the 11 factors compared between the two stocks.
About Arca Continental
Arca Continental, S.A.B. de C.V., together with its subsidiaries, produces, distributes, and sells non-alcoholic beverages in Mexico, Peru, the United States, Argentina, and Ecuador. It operates through Beverages and Other segments. The company's products include soft drinks, milk whole/light/flavored, fruit/soy, and energy/sports drinks; water; tea; sugar/candies; coffee; ice cream snow/cones; yogurt/cream cheese; potato, plantain, and tortilla chips; corn puffs, popcorn, pork rinds, peanuts/seeds, sauces/dips, and baked goods; and other carbonated and non-carbonated, and dairy beverages. It sells its products under the Coca-Cola Company, Aybal, DASANI, Ciel, Cepita Del Valle, Del Valle, Aquarius, Minute Maid, POWERADE, Fuze Tea, Ingenio Famaillá, Dulna, El Manjar Toni, Golos, Lato, BLaK, DUNKIN´DONUTS, Toni, Santa Clara, fairlife, Topsy, Tortolines, Prispas, Enre2, Tostitos, Bony, La Abeja, Bokados, Inalecsa, and Wise and Deep River brand names. The company sells its non-alcoholic beverages under the Coca-Cola Company brand; and snacks under the Bokados, Wise, Deep River, and other brands. Arca Continental, S.A.B. de C.V. is based in Monterrey, Mexico.
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.
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