Financial Comparison: Arca Continental (OTCMKTS:EMBVF) versus Reeds (OTCMKTS:REED)

Reeds (OTCMKTS:REED) and Arca Continental (OTCMKTS:EMBVF) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Analyst Recommendations

This is a breakdown of current recommendations for Reeds and Arca Continental, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reeds	0	0	0	1	4.00
Arca Continental	0	0	4	0	3.00

Earnings & Valuation

This table compares Reeds and Arca Continental”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reeds	$29.14 million	0.40	-$13.15 million	($1.35)	-0.72
Arca Continental	N/A	N/A	N/A	$3.86	2.95

Arca Continental has lower revenue, but higher earnings 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.

Profitability

This table compares Reeds and Arca Continental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reeds	-42.48%	-358.36%	-59.26%
Arca Continental	N/A	N/A	N/A

Insider and Institutional Ownership

51.5% of Reeds shares are held by institutional investors. Comparatively, 6.2% of Arca Continental shares are held by institutional investors. 0.0% of Reeds shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Arca Continental beats Reeds on 6 of the 11 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 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.