Analyzing Reborn Coffee (NASDAQ:REBN) & Texas Roadhouse (NASDAQ:TXRH)

Reborn Coffee (NASDAQ:REBN) and Texas Roadhouse (NASDAQ:TXRH) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares Reborn Coffee and Texas Roadhouse”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reborn Coffee	$5.95 million	2.67	-$4.00 million	($1.45)	-2.98
Texas Roadhouse	$5.37 billion	2.25	$304.88 million	$6.47	28.01

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

Risk and Volatility

Reborn Coffee has a beta of 2.4, meaning that its share price is 140% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-67.56%	-171.86%	-40.14%
Texas Roadhouse	8.07%	34.02%	15.11%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Reborn Coffee and Texas Roadhouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	0	0	0	0	0.00
Texas Roadhouse	0	11	12	0	2.52

Texas Roadhouse has a consensus price target of $192.73, suggesting a potential upside of 6.36%. Given Texas Roadhouse’s stronger consensus rating and higher probable upside, analysts plainly believe Texas Roadhouse is more favorable than Reborn Coffee.

Institutional and Insider Ownership

1.8% of Reborn Coffee shares are owned by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are owned by institutional investors. 43.1% of Reborn Coffee shares are owned by company insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Texas Roadhouse beats Reborn Coffee on 11 of the 14 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 Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.