Reborn Coffee (NASDAQ:REBN – Get Free Report) and Ark Restaurants (NASDAQ:ARKR – Get Free Report) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Valuation and Earnings
This table compares Reborn Coffee and Ark Restaurants’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reborn Coffee | $3.24 million | 2.32 | -$3.56 million | ($0.35) | -1.63 |
| Ark Restaurants | $183.67 million | 0.30 | $9.28 million | $1.43 | 10.83 |
Ark Restaurants has higher revenue and earnings than Reborn Coffee. Reborn Coffee is trading at a lower price-to-earnings ratio than Ark Restaurants, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Reborn Coffee | -99.33% | -114.27% | -45.58% |
| Ark Restaurants | 2.78% | 8.48% | 2.62% |
Analyst Ratings
This is a summary of current recommendations and price targets for Reborn Coffee and Ark Restaurants, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reborn Coffee | 0 | 0 | 1 | 0 | 3.00 |
| Ark Restaurants | 0 | 0 | 0 | 0 | N/A |
Reborn Coffee presently has a consensus target price of $5.50, suggesting a potential upside of 864.91%. Given Reborn Coffee’s higher probable upside, analysts clearly believe Reborn Coffee is more favorable than Ark Restaurants.
Institutional & Insider Ownership
0.1% of Reborn Coffee shares are held by institutional investors. Comparatively, 17.3% of Ark Restaurants shares are held by institutional investors. 67.6% of Reborn Coffee shares are held by insiders. Comparatively, 37.4% of Ark Restaurants shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Ark Restaurants beats Reborn Coffee on 8 of the 12 factors compared between the two stocks.
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.
About Ark Restaurants
Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. It operates in New York City; Washington, D.C.; Las Vegas, Nevada; Atlantic City, New Jersey; Florida; and Alabama, as well as fast food concepts and catering operations. The company was incorporated in 1983 and is based in New York, New York.
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