Cheesecake Factory (NASDAQ:CAKE – Get Free Report) and Reborn Coffee (NASDAQ:REBN – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Profitability
This table compares Cheesecake Factory and Reborn Coffee’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cheesecake Factory | 1.42% | 25.95% | 3.01% |
| Reborn Coffee | -109.53% | -124.21% | -52.08% |
Earnings and Valuation
This table compares Cheesecake Factory and Reborn Coffee’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cheesecake Factory | $3.38 billion | 0.56 | $43.12 million | $0.94 | 39.40 |
| Reborn Coffee | $3.24 million | 3.16 | -$3.56 million | ($0.33) | -2.35 |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Cheesecake Factory and Reborn Coffee, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cheesecake Factory | 4 | 10 | 2 | 0 | 1.88 |
| Reborn Coffee | 0 | 0 | 1 | 0 | 3.00 |
Cheesecake Factory currently has a consensus target price of $36.57, suggesting a potential downside of 1.27%. Reborn Coffee has a consensus target price of $5.50, suggesting a potential upside of 607.85%. Given Reborn Coffee’s stronger consensus rating and higher probable upside, analysts plainly believe Reborn Coffee is more favorable than Cheesecake Factory.
Institutional & Insider Ownership
93.6% of Cheesecake Factory shares are held by institutional investors. Comparatively, 0.1% of Reborn Coffee shares are held by institutional investors. 8.7% of Cheesecake Factory shares are held by company insiders. Comparatively, 67.6% of Reborn Coffee shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Cheesecake Factory beats Reborn Coffee on 9 of the 13 factors compared between the two stocks.
About Cheesecake Factory
The Cheesecake Factory Incorporated engages in restaurant business. The company operates two bakeries that produces cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors. It also operates restaurants in the United States and Canada under brands comprising The Cheesecake Factory, North Italia, and a collection of Fox Restaurant Concepts, as well as The Cheesecake Factory restaurants under licensing agreements internationally. The company was founded in 1972 and is headquartered in Calabasas, California.
About Reborn Coffee
Reborn Coffee, Inc. 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. Reborn Coffee, Inc. was founded in 2014 and is based in Brea, California.
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