Critical Contrast: Reborn Coffee (REBN) versus Its Rivals

Reborn Coffee (NASDAQ:REBN) is one of 383 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its competitors? We will compare Reborn Coffee to related companies based on the strength of its institutional ownership, earnings, analyst recommendations, risk, valuation, dividends and profitability.

Earnings and Valuation

This table compares Reborn Coffee and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Reborn Coffee	$8.10 million	-$9.14 million	-2.16
Reborn Coffee Competitors	$3.42 billion	$250.18 million	-160.58

Reborn Coffee’s competitors have higher revenue and earnings than Reborn Coffee. Reborn Coffee is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Reborn Coffee has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, Reborn Coffee’s competitors have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Insider & Institutional Ownership

1.8% of Reborn Coffee shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 29.3% of Reborn Coffee shares are held by company insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” 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 Reborn Coffee and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-37.56%	-354.56%	-42.27%
Reborn Coffee Competitors	8.51%	-42.06%	2.05%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Reborn Coffee and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	1	0	0	0	1.00
Reborn Coffee Competitors	3835	17324	25643	908	2.50

As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 52.97%. Given Reborn Coffee’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Reborn Coffee has less favorable growth aspects than its competitors.

Summary

Reborn Coffee competitors beat Reborn Coffee on 10 of the 13 factors compared.

About Reborn Coffee

Reborn Coffee, Inc. (NASDAQ: REBN) is a specialty coffee company that operates cafés and sells coffee products under the Reborn Coffee brand. The company focuses on specialty-grade coffee and offers brewed coffee, espresso-based beverages, teas, cold beverages, pastries and other food items. In addition to its cafés, Reborn Coffee sells roasted coffee and related products through online channels and other retail and wholesale distribution opportunities. The company has also pursued licensing and franchising arrangements as part of its strategy to expand the brand beyond company-operated locations.