Analyzing Darden Restaurants (NYSE:DRI) & Reborn Coffee (NASDAQ:REBN)

Darden Restaurants (NYSE:DRI) and Reborn Coffee (NASDAQ:REBN) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Darden Restaurants	9.01%	50.12%	9.30%
Reborn Coffee	-67.56%	-171.86%	-40.14%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Darden Restaurants	$11.39 billion	2.00	$1.03 billion	$8.73	22.31
Reborn Coffee	$5.95 million	2.29	-$4.00 million	($1.45)	-2.57

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

Insider & Institutional Ownership

93.6% of Darden Restaurants shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 0.6% of Darden Restaurants shares are held by company insiders. Comparatively, 43.1% of Reborn Coffee shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Darden Restaurants has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Darden Restaurants and Reborn Coffee, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Darden Restaurants	1	7	17	0	2.64
Reborn Coffee	0	0	0	0	0.00

Darden Restaurants presently has a consensus price target of $192.52, suggesting a potential downside of 1.15%. Given Darden Restaurants’ stronger consensus rating and higher probable upside, research analysts clearly believe Darden Restaurants is more favorable than Reborn Coffee.

Summary

Darden Restaurants beats Reborn Coffee on 11 of the 14 factors compared between the two stocks.

About Darden Restaurants

Darden Restaurants, Inc., together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, and Capital Burger brand names. Darden Restaurants, Inc. was incorporated in 1995 and is based in Orlando, Florida.

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.