Reed's (NYSE: REED) and Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) are both non-cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitabiliy and earnings.
Fomento Economico Mexicano S.A.B. de C.V. pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. Reed's does not pay a dividend. Fomento Economico Mexicano S.A.B. de C.V. pays out 48.7% of its earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for Reed's and Fomento Economico Mexicano S.A.B. de C.V., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fomento Economico Mexicano S.A.B. de C.V.||0||1||3||0||2.75|
Reed's currently has a consensus price target of $6.75, suggesting a potential upside of 164.71%. Fomento Economico Mexicano S.A.B. de C.V. has a consensus price target of $92.00, suggesting a potential downside of 5.43%. Given Reed's’ stronger consensus rating and higher probable upside, analysts clearly believe Reed's is more favorable than Fomento Economico Mexicano S.A.B. de C.V..
Earnings and Valuation
This table compares Reed's and Fomento Economico Mexicano S.A.B. de C.V.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Reed's||$40.76 million||0.87||-$2.73 million||N/A||N/A|
|Fomento Economico Mexicano S.A.B. de C.V.||$22.94 billion||1.52||$2.82 billion||$2.71||35.90|
Fomento Economico Mexicano S.A.B. de C.V. has higher revenue and earnings than Reed's.
This table compares Reed's and Fomento Economico Mexicano S.A.B. de C.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fomento Economico Mexicano S.A.B. de C.V.||5.59%||8.59%||4.57%|
Insider and Institutional Ownership
24.0% of Fomento Economico Mexicano S.A.B. de C.V. shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Fomento Economico Mexicano S.A.B. de C.V. beats Reed's on 9 of the 12 factors compared between the two stocks.
Reed’s, Inc. develops, manufactures, markets and sells natural non-alcoholic carbonated soft drinks, Kombucha, candies and ice creams. The Company manufactures, licenses, markets and sells several product lines, such as Reed’s Ginger Brews; Virgil’s Root Beer, Cream Sodas, Dr. Better and Real Cola, including ZERO diet sodas; Culture Club Kombucha; China Colas; Reed’s Ginger candy and ice creams, and Sonoma Sparkler and other juice based products. The Company sells its products throughout the United States and in select international markets. It sells products through a network of natural, gourmet and beer distributors and direct to certain large national retailers. The Company also has private label business. The Company manufactures and sells beverages and candies or other ginger related products. The Company produces carbonated beverages in multiple facilities, including a facility in Los Angeles, California, known as The Brewery.
About Fomento Economico Mexicano S.A.B. de C.V.
Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA) is a holding company. The Company’s segments are Coca-Cola FEMSA, FEMSA Comercio-Retail Division and FEMSA Comercio-Fuel Division. The Company conducts its operations through holding companies, such as Coca-Cola FEMSA, S.A.B. de C.V. and subsidiaries (Coca-Cola FEMSA), which produces, distributes and sells beverages; FEMSA Comercio, S.A. de C.V. and subsidiaries (FEMSA Comercio), which consists of a Retail Division operating various small-format chain stores, and CB Equity LLP, which holds its equity investment in Heineken N.V., and Heineken Holding N.V. The Company’s Coca-Cola FEMSA produces, markets, sells and distributes Coca-Cola trademark beverages through standard bottler agreements in certain territories in the countries, in which it operates. Coca-Cola FEMSA also sells bottled water products. FEMSA participates in the retail sector primarily through FEMSA Comercio.
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