Travel + Leisure (NYSE:TNL) and Reborn Coffee (NASDAQ:REBN) Critical Analysis

Reborn Coffee (NASDAQ:REBN) and Travel + Leisure (NYSE:TNL) 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, earnings, risk, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Reborn Coffee and Travel + Leisure”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reborn Coffee	$8.10 million	0.81	-$9.14 million	($1.86)	-0.43
Travel + Leisure	$4.02 billion	0.99	$230.00 million	$3.66	17.85

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

Analyst Ratings

This is a summary of recent ratings and target prices for Reborn Coffee and Travel + Leisure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	1	0	0	0	1.00
Travel + Leisure	0	2	11	0	2.85

Travel + Leisure has a consensus price target of $89.18, indicating a potential upside of 36.55%. Given Travel + Leisure’s stronger consensus rating and higher possible upside, analysts clearly believe Travel + Leisure is more favorable than Reborn Coffee.

Volatility & Risk

Reborn Coffee has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, Travel + Leisure has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Insider and Institutional Ownership

1.8% of Reborn Coffee shares are held by institutional investors. Comparatively, 87.5% of Travel + Leisure shares are held by institutional investors. 29.3% of Reborn Coffee shares are held by insiders. Comparatively, 4.0% of Travel + Leisure shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Reborn Coffee and Travel + Leisure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-37.56%	-307.84%	-42.87%
Travel + Leisure	5.81%	-46.91%	6.59%

Summary

Travel + Leisure beats Reborn Coffee on 12 of the 14 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 Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.