Analyzing Jammin Java (OTCMKTS:JAMN) & Reeds (OTCMKTS:REED)

Reeds (OTCMKTS:REED) and Jammin Java (OTCMKTS:JAMN) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Insider & Institutional Ownership

51.5% of Reeds shares are owned by institutional investors. 0.3% of Reeds shares are owned by company insiders. Comparatively, 18.2% of Jammin Java shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Reeds and Jammin Java”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reeds	$36.32 million	0.88	-$13.15 million	($7.32)	-0.49
Jammin Java	N/A	N/A	-$230,000.00	N/A	N/A

Jammin Java has lower revenue, but higher earnings than Reeds.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Reeds and Jammin Java, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reeds	0	0	1	0	3.00
Jammin Java	0	0	0	0	0.00

Reeds currently has a consensus price target of $10.50, suggesting a potential upside of 194.94%. Given Reeds’ stronger consensus rating and higher possible upside, equities analysts plainly believe Reeds is more favorable than Jammin Java.

Profitability

This table compares Reeds and Jammin Java’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%
Jammin Java	N/A	N/A	N/A

Volatility & Risk

Reeds has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Jammin Java has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Summary

Jammin Java 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 Jammin Java

Jammin Java Corp. produces and sells roasted coffee under the Marley Coffee brand name in the United States and internationally. It distributes roasted coffee to grocery, retail, online, service, hospitality, office coffee service, and big box store industries. The company was formerly known as Marley Coffee Inc. and changed its name to Jammin Java Corp. in July 2009. Jammin Java Corp. was founded in 2004 and is headquartered in Denver, Colorado.