Reborn Coffee (NASDAQ:REBN) vs. Planet Fitness (NYSE:PLNT) Head-To-Head Analysis

Reborn Coffee (NASDAQ:REBN) and Planet Fitness (NYSE:PLNT) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Reborn Coffee and Planet Fitness, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	1	0	0	0	1.00
Planet Fitness	1	9	11	1	2.55

Planet Fitness has a consensus price target of $69.34, suggesting a potential upside of 36.62%. Given Planet Fitness’ stronger consensus rating and higher possible upside, analysts plainly believe Planet Fitness is more favorable than Reborn Coffee.

Volatility & Risk

Reborn Coffee has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Reborn Coffee and Planet Fitness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-37.56%	-354.56%	-42.27%
Planet Fitness	16.88%	-59.46%	8.60%

Valuation & Earnings

This table compares Reborn Coffee and Planet Fitness”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reborn Coffee	$8.10 million	1.49	-$9.14 million	($0.44)	-3.18
Planet Fitness	$1.32 billion	2.90	$219.10 million	$2.95	17.21

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

Insider and Institutional Ownership

1.8% of Reborn Coffee shares are held by institutional investors. Comparatively, 95.5% of Planet Fitness shares are held by institutional investors. 29.3% of Reborn Coffee shares are held by company insiders. Comparatively, 0.9% of Planet Fitness shares are held by company 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.

Summary

Planet Fitness beats Reborn Coffee on 13 of the 15 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 Planet Fitness

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.