Reborn Coffee (NASDAQ:REBN) vs. Chuy’s (NASDAQ:CHUY) Head-To-Head Comparison

Chuy’s (NASDAQ:CHUY) and Reborn Coffee (NASDAQ:REBN) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Profitability

This table compares Chuy’s and Reborn Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chuy’s	6.58%	13.51%	7.13%
Reborn Coffee	-63.39%	-222.87%	-40.93%

Volatility & Risk

Chuy’s has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.92, meaning that its share price is 192% more volatile than the S&P 500.

Valuation & Earnings

This table compares Chuy’s and Reborn Coffee’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chuy’s	$461.31 million	1.38	$31.51 million	$1.69	21.87
Reborn Coffee	$5.95 million	2.84	-$4.00 million	($1.99)	-2.52

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Chuy’s and Reborn Coffee, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chuy’s	0	6	1	0	2.14
Reborn Coffee	0	0	0	0	N/A

Chuy’s presently has a consensus target price of $34.71, indicating a potential downside of 6.08%. Given Chuy’s’ higher possible upside, research analysts clearly believe Chuy’s is more favorable than Reborn Coffee.

Insider & Institutional Ownership

99.9% of Chuy’s shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 1.7% of Chuy’s shares are held by insiders. Comparatively, 65.9% of Reborn Coffee shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Chuy’s beats Reborn Coffee on 9 of the 12 factors compared between the two stocks.

About Chuy’s

Chuy's Holdings, Inc., through its subsidiaries, owns and operates full-service restaurants under the Chuy's name in the United States. The company was founded in 1982 and is headquartered in Austin, Texas.

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.