Reborn Coffee (NASDAQ:REBN) vs. Ollie’s Bargain Outlet (NASDAQ:OLLI) Financial Contrast

Reborn Coffee (NASDAQ:REBN) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Reborn Coffee and Ollie’s Bargain Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reborn Coffee	$5.93 million	2.25	-$4.81 million	($2.18)	-1.02
Ollie’s Bargain Outlet	$2.27 billion	3.16	$199.76 million	$3.45	33.95

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

Institutional and Insider Ownership

1.8% of Reborn Coffee shares are held by institutional investors. 24.0% of Reborn Coffee shares are held by insiders. Comparatively, 0.8% of Ollie’s Bargain Outlet shares are held by 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.

Profitability

This table compares Reborn Coffee and Ollie’s Bargain Outlet’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%
Ollie’s Bargain Outlet	8.74%	12.66%	8.20%

Volatility & Risk

Reborn Coffee has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Reborn Coffee and Ollie’s Bargain Outlet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	1	0	0	0	1.00
Ollie’s Bargain Outlet	0	5	9	0	2.64

Ollie’s Bargain Outlet has a consensus target price of $144.00, indicating a potential upside of 22.94%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, analysts clearly believe Ollie’s Bargain Outlet is more favorable than Reborn Coffee.

Summary

Ollie’s Bargain Outlet 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 Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.