Reviewing Reborn Coffee (NASDAQ:REBN) & Restaurant Brands International (NYSE:QSR)

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

Institutional & Insider Ownership

82.3% of Restaurant Brands International shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 1.4% of Restaurant Brands International shares are held by insiders. Comparatively, 43.1% of Reborn Coffee shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Restaurant Brands International and Reborn Coffee”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Restaurant Brands International	$7.02 billion	2.90	$1.19 billion	$3.99	15.72
Reborn Coffee	$5.95 million	3.21	-$4.00 million	($1.45)	-3.59

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

Analyst Ratings

This is a breakdown of recent recommendations for Restaurant Brands International and Reborn Coffee, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Restaurant Brands International	2	8	16	0	2.54
Reborn Coffee	0	0	0	0	0.00

Restaurant Brands International currently has a consensus target price of $80.00, indicating a potential upside of 27.54%. Given Restaurant Brands International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Restaurant Brands International is more favorable than Reborn Coffee.

Profitability

This table compares Restaurant Brands International and Reborn Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Restaurant Brands International	16.01%	28.25%	5.73%
Reborn Coffee	-67.56%	-171.86%	-40.14%

Volatility and Risk

Restaurant Brands International has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500.

Summary

Restaurant Brands International beats Reborn Coffee on 11 of the 14 factors compared between the two stocks.

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.

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.