Financial Contrast: Reborn Coffee (NASDAQ:REBN) and National Vision (NASDAQ:EYE)

Reborn Coffee (NASDAQ:REBN) and National Vision (NASDAQ:EYE) are both small-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Risk & Volatility

Reborn Coffee has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, National Vision has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Institutional and Insider Ownership

1.8% of Reborn Coffee shares are owned by institutional investors. 3.7% of Reborn Coffee shares are owned by insiders. Comparatively, 2.7% of National Vision shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Reborn Coffee and National Vision, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	0	0	0	0	0.00
National Vision	0	4	6	0	2.60

National Vision has a consensus price target of $24.73, indicating a potential upside of 7.56%. Given National Vision’s stronger consensus rating and higher possible upside, analysts clearly believe National Vision is more favorable than Reborn Coffee.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reborn Coffee	$5.93 million	2.26	-$4.81 million	($2.18)	-1.14
National Vision	$1.82 billion	1.00	-$28.50 million	($0.18)	-127.72

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

Profitability

This table compares Reborn Coffee and National Vision’s 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%
National Vision	-0.75%	3.56%	1.49%

Summary

National Vision beats Reborn Coffee on 8 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 National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.