Analyzing Reborn Coffee (NASDAQ:REBN) and Procter & Gamble (NYSE:PG)

Procter & Gamble (NYSE:PG) and Reborn Coffee (NASDAQ:REBN) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Procter & Gamble and Reborn Coffee, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	9	11	0	2.55
Reborn Coffee	1	0	0	0	1.00

Procter & Gamble presently has a consensus price target of $171.53, indicating a potential upside of 13.13%. Given Procter & Gamble’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Procter & Gamble is more favorable than Reborn Coffee.

Risk and Volatility

Procter & Gamble has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.13, suggesting that its stock price is 113% more volatile than the S&P 500.

Insider and Institutional Ownership

65.8% of Procter & Gamble shares are owned by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are owned by institutional investors. 0.2% of Procter & Gamble shares are owned by insiders. Comparatively, 24.0% of Reborn Coffee shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Procter & Gamble and Reborn Coffee”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$84.28 billion	4.21	$15.97 billion	$6.85	22.13
Reborn Coffee	$5.93 million	2.23	-$4.81 million	($2.18)	-1.02

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	19.74%	32.51%	13.53%
Reborn Coffee	-152.76%	-995.56%	-118.07%

Summary

Procter & Gamble beats Reborn Coffee on 12 of the 14 factors compared between the two stocks.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.

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.