Head-To-Head Review: Dine Brands Global (NYSE:DIN) and Reborn Coffee (NASDAQ:REBN)

Dine Brands Global (NYSE:DIN) and Reborn Coffee (NASDAQ:REBN) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Dine Brands Global and Reborn Coffee, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dine Brands Global	0	2	5	0	2.71
Reborn Coffee	0	0	0	0	N/A

Dine Brands Global currently has a consensus target price of $58.57, indicating a potential upside of 61.80%. Given Dine Brands Global’s higher probable upside, analysts clearly believe Dine Brands Global is more favorable than Reborn Coffee.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dine Brands Global	10.59%	-35.31%	5.49%
Reborn Coffee	-67.15%	-182.98%	-42.46%

Volatility & Risk

Dine Brands Global has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500.

Insider and Institutional Ownership

92.8% of Dine Brands Global shares are owned by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are owned by institutional investors. 3.0% of Dine Brands Global shares are owned by company insiders. Comparatively, 65.9% of Reborn Coffee shares are owned by company 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.

Valuation & Earnings

This table compares Dine Brands Global and Reborn Coffee’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dine Brands Global	$831.07 million	0.67	$97.18 million	$5.62	6.44
Reborn Coffee	$5.95 million	2.45	-$4.00 million	($1.99)	-3.50

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

Summary

Dine Brands Global beats Reborn Coffee on 10 of the 13 factors compared between the two stocks.

About Dine Brands Global

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, and operates restaurants in the United States and internationally. The company operates through six segments: Applebee's Franchise Operations, International House of Pancakes (IHOP) Franchise Solutions, Fuzzy's franchise operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. It owns and franchises three restaurant concepts, including Applebee's Neighborhood Grill + Bar within the casual dining category; and IHOP in the family dining category of the restaurant industry; Fuzzy's Taco Shop within the fast-casual dining category. In addition, its Applebee's restaurants offer American fare with drinks and local draft beers; IHOP restaurants provide full table services, food and beverage; and Fuzzy's Taco Shop offers baja-style mexican food like baja tacos, chips and queso, guacamole and salsa made in house, and a full bar including margaritas, and cold draft beer. The company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Pasadena, California.

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.