Contrasting Luckin Coffee (LKNCY) and Its Competitors

Earnings and Valuation

This table compares Luckin Coffee and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Luckin Coffee	$4.72 billion	$401.71 million	24.06
Luckin Coffee Competitors	$12.67 billion	$1.30 billion	-4.52

Luckin Coffee’s peers have higher revenue and earnings than Luckin Coffee. Luckin Coffee is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Luckin Coffee and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luckin Coffee	9.58%	36.55%	17.85%
Luckin Coffee Competitors	1.97%	-4.92%	-0.88%

Institutional and Insider Ownership

0.5% of Luckin Coffee shares are owned by institutional investors. Comparatively, 48.6% of shares of all “BEVERAGES – SOFT” companies are owned by institutional investors. 2.7% of Luckin Coffee shares are owned by company insiders. Comparatively, 22.7% of shares of all “BEVERAGES – SOFT” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Luckin Coffee has a beta of -0.25, suggesting that its stock price is 125% less volatile than the S&P 500. Comparatively, Luckin Coffee’s peers have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.

Summary

Luckin Coffee peers beat Luckin Coffee on 5 of the 9 factors compared.

About Luckin Coffee

Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.