Contrasting Reborn Coffee (NASDAQ:REBN) & BBB Foods (NYSE:TBBB)

BBB Foods (NYSE:TBBB) and Reborn Coffee (NASDAQ:REBN) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BBB Foods and Reborn Coffee, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	1	4	3	0	2.25
Reborn Coffee	1	0	0	0	1.00

BBB Foods currently has a consensus target price of $37.00, indicating a potential downside of 1.80%. Given BBB Foods’ stronger consensus rating and higher probable upside, equities research analysts plainly believe BBB Foods is more favorable than Reborn Coffee.

Insider & Institutional Ownership

8.4% of BBB Foods shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 24.0% of Reborn Coffee 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-2.61%	-44.56%	-7.47%
Reborn Coffee	-191.48%	-995.56%	-170.77%

Valuation and Earnings

This table compares BBB Foods and Reborn Coffee”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$72.53 billion	0.06	$18.36 million	($0.84)	-44.85
Reborn Coffee	$5.93 million	1.68	-$4.81 million	($2.56)	-0.65

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

Volatility & Risk

BBB Foods has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.

Summary

BBB Foods beats Reborn Coffee on 10 of the 14 factors compared between the two stocks.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.

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.