Contrasting Reborn Coffee (NASDAQ:REBN) & Yum China (NYSE:YUMC)

Yum China (NYSE:YUMCGet Free Report) and Reborn Coffee (NASDAQ:REBNGet Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Profitability

This table compares Yum China and Reborn Coffee’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yum China 7.49% 11.90% 7.11%
Reborn Coffee -67.15% -182.98% -42.46%

Volatility & Risk

Yum China has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.57, suggesting that its stock price is 157% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Yum China and Reborn Coffee, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yum China 0 1 3 0 2.75
Reborn Coffee 0 0 0 0 N/A

Yum China presently has a consensus price target of $54.65, suggesting a potential upside of 53.47%. Given Yum China’s higher possible upside, equities research analysts clearly believe Yum China is more favorable than Reborn Coffee.

Institutional and Insider Ownership

85.6% of Yum China shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 0.3% of Yum China shares are held by company insiders. Comparatively, 65.9% of Reborn Coffee shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Yum China and Reborn Coffee’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yum China $10.98 billion 1.26 $827.00 million $1.99 17.89
Reborn Coffee $5.95 million 1.51 -$4.00 million ($1.99) -2.16

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

Summary

Yum China beats Reborn Coffee on 10 of the 13 factors compared between the two stocks.

About Yum China

(Get Free Report)

Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People's Republic of China. The company operates through KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services. Yum China Holdings, Inc. was founded in 1987 and is headquartered in Shanghai, the People's Republic of China.

About Reborn Coffee

(Get Free Report)

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.

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