Contrasting Reborn Coffee (NASDAQ:REBN) and Nestle (OTCMKTS:NSRGY)

Reborn Coffee (NASDAQ:REBN) and Nestle (OTCMKTS:NSRGY) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Valuation and Earnings

This table compares Reborn Coffee and Nestle”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	$6.57 million	2.08	-$4.81 million	($2.18)	-1.16
Nestle	$103.78 billion	2.32	$12.36 billion	N/A	N/A

Nestle has higher revenue and earnings than Reborn Coffee.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-152.76%	-995.56%	-118.07%
Nestle	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Reborn Coffee and Nestle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	0	0	0	0	0.00
Nestle	1	3	0	1	2.20

Nestle has a consensus target price of $91.00, indicating a potential downside of 2.52%. Given Nestle’s stronger consensus rating and higher possible upside, analysts clearly believe Nestle is more favorable than Reborn Coffee.

Risk & Volatility

Reborn Coffee has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500. Comparatively, Nestle has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Insider and Institutional Ownership

1.8% of Reborn Coffee shares are owned by institutional investors. Comparatively, 0.6% of Nestle shares are owned by institutional investors. 3.7% of Reborn Coffee shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Nestle 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 Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.