Critical Contrast: Reborn Coffee (NASDAQ:REBN) versus Albertsons Companies (NYSE:ACI)

Reborn Coffee (NASDAQ:REBN) and Albertsons Companies (NYSE:ACI) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares Reborn Coffee and Albertsons Companies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reborn Coffee	$6.57 million	1.51	-$4.81 million	($2.18)	-0.76
Albertsons Companies	$80.39 billion	0.12	$958.60 million	$1.69	10.44

Albertsons Companies has higher revenue and earnings than Reborn Coffee. Reborn Coffee is trading at a lower price-to-earnings ratio than Albertsons Companies, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Reborn Coffee has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, Albertsons Companies has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Insider & Institutional Ownership

1.8% of Reborn Coffee shares are held by institutional investors. Comparatively, 71.4% of Albertsons Companies shares are held by institutional investors. 24.0% of Reborn Coffee shares are held by company insiders. Comparatively, 1.4% of Albertsons Companies 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.

Analyst Ratings

This is a summary of current ratings and price targets for Reborn Coffee and Albertsons Companies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	1	0	0	0	1.00
Albertsons Companies	1	5	10	0	2.56

Albertsons Companies has a consensus target price of $23.43, suggesting a potential upside of 32.84%. Given Albertsons Companies’ stronger consensus rating and higher possible upside, analysts clearly believe Albertsons Companies is more favorable than Reborn Coffee.

Profitability

This table compares Reborn Coffee and Albertsons Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-152.76%	-995.56%	-118.07%
Albertsons Companies	1.20%	36.39%	4.45%

Summary

Albertsons Companies beats Reborn Coffee on 11 of the 14 factors compared between the two stocks.

About Reborn Coffee

Reborn Coffee, Inc., through its subsidiaries, operates and franchises retail locations, kiosks, and cafes that focus on serving specialty-roasted coffee in California. It purchases, roasts, and sells coffee, tea and other beverages, and various food items. It offers products in various form factors, such as whole bean roasted coffee bags, single-serve drip bags, and pour over packs. The company also offers its products online. Reborn Coffee, Inc. was founded in 2014 and is headquartered in Brea, California.

About Albertsons Companies

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.