Reborn Coffee (NASDAQ:REBN – Get Free Report) and Purple Innovation (NASDAQ:PRPL – Get Free Report) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Reborn Coffee and Purple Innovation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reborn Coffee | -191.48% | -995.56% | -170.77% |
| Purple Innovation | -12.40% | -472.12% | -13.35% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Reborn Coffee and Purple Innovation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reborn Coffee | 1 | 0 | 0 | 0 | 1.00 |
| Purple Innovation | 1 | 1 | 0 | 0 | 1.50 |
Volatility and Risk
Reborn Coffee has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.
Institutional and Insider Ownership
1.8% of Reborn Coffee shares are owned by institutional investors. Comparatively, 88.4% of Purple Innovation shares are owned by institutional investors. 24.0% of Reborn Coffee shares are owned by company insiders. Comparatively, 53.9% of Purple Innovation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Reborn Coffee and Purple Innovation”s top-line 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 | 1.66 | -$4.81 million | ($2.56) | -0.64 |
| Purple Innovation | $487.88 million | 0.18 | -$97.90 million | ($0.53) | -1.55 |
Reborn Coffee has higher earnings, but lower revenue than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than Reborn Coffee, indicating that it is currently the more affordable of the two stocks.
Summary
Purple Innovation beats Reborn Coffee on 9 of the 13 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 Purple Innovation
Purple Innovation, Inc. designs and manufactures sleep and other products in the United States and internationally. The company offers mattresses, pillows, cushions, bases, sheets, platforms, adjustable bases, mattress protectors, foundations, blankets, duvets, duvet covers, seat cushions, and pet beds under the Purple brand. It markets and sells its products through its e-commerce online channels, retail brick-and-mortar wholesale partners, third-party online retailers, and Purple showrooms, as well as through its website, Purple.com. The company was founded in 2010 and is headquartered in Lehi, Utah.
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