Critical Review: Reborn Coffee (NASDAQ:REBN) and CAVA Group (NYSE:CAVA)

CAVA Group (NYSE:CAVA) and Reborn Coffee (NASDAQ:REBN) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

73.2% of CAVA Group shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 56.1% of Reborn Coffee shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for CAVA Group and Reborn Coffee, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	4	10	0	2.71
Reborn Coffee	0	0	0	0	N/A

CAVA Group presently has a consensus price target of $60.42, suggesting a potential downside of 18.59%. Given CAVA Group’s higher probable upside, equities research analysts plainly believe CAVA Group is more favorable than Reborn Coffee.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CAVA Group	1.82%	4.28%	1.50%
Reborn Coffee	-67.15%	-182.98%	-42.46%

Valuation and Earnings

This table compares CAVA Group and Reborn Coffee’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$728.70 million	11.61	$13.28 million	N/A	N/A
Reborn Coffee	$5.95 million	0.61	-$4.00 million	($1.99)	-0.87

CAVA Group has higher revenue and earnings than Reborn Coffee.

Summary

CAVA Group beats Reborn Coffee on 9 of the 10 factors compared between the two stocks.

About CAVA Group

CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.

About Reborn Coffee

Reborn Coffee, Inc. 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. Reborn Coffee, Inc. was founded in 2014 and is based in Brea, California.