Reviewing FAT Brands (NASDAQ:FAT) & Reborn Coffee (NASDAQ:REBN)

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FAT Brands	$606.01 million	0.14	-$90.11 million	($9.22)	-0.57
Reborn Coffee	$5.95 million	0.68	-$4.00 million	($1.63)	-0.68

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

Insider and Institutional Ownership

6.9% of FAT Brands shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 11.8% of FAT Brands shares are held by insiders. Comparatively, 43.1% of Reborn Coffee shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

FAT Brands has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 3.08, suggesting that its stock price is 208% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FAT Brands	-24.53%	N/A	-10.87%
Reborn Coffee	-65.25%	-196.20%	-41.68%

Summary

FAT Brands beats Reborn Coffee on 6 of the 11 factors compared between the two stocks.

About FAT Brands

FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Holdings, LLC.

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.