Critical Review: Reborn Coffee (REBN) and Its Peers

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

Institutional and Insider 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 insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets 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 plainly believe Reborn Coffee has less favorable growth aspects than its competitors.

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%

Earnings & Valuation

This table compares Reborn Coffee and its competitors top-line 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.

Risk & Volatility

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

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.