Reborn Coffee (NASDAQ:REBN – Get Free Report) and Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Volatility & Risk
Reborn Coffee has a beta of 2.69, indicating that its share price is 169% more volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Reborn Coffee and Dave & Buster’s Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reborn Coffee | 0 | 0 | 0 | 0 | 0.00 |
| Dave & Buster’s Entertainment | 0 | 4 | 5 | 0 | 2.56 |
Profitability
This table compares Reborn Coffee and Dave & Buster’s Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reborn Coffee | -67.56% | -171.86% | -40.14% |
| Dave & Buster’s Entertainment | 5.10% | 51.75% | 3.57% |
Insider & Institutional Ownership
1.8% of Reborn Coffee shares are held by institutional investors. Comparatively, 91.5% of Dave & Buster’s Entertainment shares are held by institutional investors. 43.1% of Reborn Coffee shares are held by insiders. Comparatively, 1.6% of Dave & Buster’s Entertainment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Reborn Coffee and Dave & Buster’s Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reborn Coffee | $5.95 million | 0.70 | -$4.00 million | ($1.45) | -0.78 |
| Dave & Buster’s Entertainment | $2.21 billion | 0.66 | $126.90 million | $2.74 | 13.45 |
Dave & Buster’s Entertainment has higher revenue and earnings than Reborn Coffee. Reborn Coffee is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.
Summary
Dave & Buster’s Entertainment beats Reborn Coffee on 11 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 Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
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