Critical Analysis: Fevertree Drinks (FQVTF) versus The Competition

Fevertree Drinks (OTCMKTS:FQVTF) is one of 140 public companies in the “Beverages” industry, but how does it contrast to its peers? We will compare Fevertree Drinks to similar businesses based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, valuation and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Fevertree Drinks and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fevertree Drinks	0	1	1	0	2.50
Fevertree Drinks Competitors	1247	4212	5631	221	2.43

As a group, “Beverages” companies have a potential upside of 14.14%. Given Fevertree Drinks’ peers higher possible upside, analysts clearly believe Fevertree Drinks has less favorable growth aspects than its peers.

Insider and Institutional Ownership

36.7% of shares of all “Beverages” companies are held by institutional investors. 19.0% of shares of all “Beverages” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Fevertree Drinks and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fevertree Drinks	N/A	N/A	N/A
Fevertree Drinks Competitors	-9.25%	-39.52%	-0.98%

Valuation & Earnings

This table compares Fevertree Drinks and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fevertree Drinks	N/A	N/A	-673.53
Fevertree Drinks Competitors	$9.55 billion	$874.57 million	11.93

Fevertree Drinks’ peers have higher revenue and earnings than Fevertree Drinks. Fevertree Drinks is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Fevertree Drinks peers beat Fevertree Drinks on 6 of the 11 factors compared.

About Fevertree Drinks

Fevertree Drinks Plc, together with its subsidiaries, engages in the development and sale of premium mixer drinks in the United Kingdom, the United States, rest of Europe, and internationally. The company offers Indian, Mediterranean, elderflower, cucumber, damson and sloe berry, rhubarb and raspberry, aromatic, lemon, and Clementine tonic water products; gingers; sodas; cola and lemonades; cocktails; and sparkling soft drinks. It sells its products under Fever-Tree brand name to bars and restaurants. The company was formerly known as Fevertree Topco Limited and changed its name to Fevertree Drinks Plc in October 2014. Fevertree Drinks Plc was founded in 2004 and is headquartered in London, the United Kingdom.