Head to Head Survey: Reborn Coffee (NASDAQ:REBN) vs. Chuy’s (NASDAQ:CHUY)

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

Institutional & Insider Ownership

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

Profitability

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

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

Risk and Volatility

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

Valuation and Earnings

This table compares Reborn Coffee and Chuy’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	$5.95 million	2.84	-$4.00 million	($1.99)	-2.52
Chuy’s	$461.31 million	1.38	$31.51 million	$1.69	21.87

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 Ratings

This is a breakdown of current recommendations for Reborn Coffee and Chuy’s, as reported by MarketBeat.

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

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

Summary

Chuy’s beats Reborn Coffee on 9 of the 12 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 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.