Financial Analysis: FAT Brands (NASDAQ:FAT) vs. Reborn Coffee (NASDAQ:REBN)

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-65.25%	-196.20%	-41.68%
FAT Brands	-24.53%	N/A	-10.87%

Valuation and Earnings

This table compares Reborn Coffee and FAT Brands”s gross 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	0.68	-$4.00 million	($1.63)	-0.68
FAT Brands	$606.01 million	0.14	-$90.11 million	($9.22)	-0.57

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

Insider & Institutional Ownership

1.8% of Reborn Coffee shares are held by institutional investors. Comparatively, 6.9% of FAT Brands shares are held by institutional investors. 43.1% of Reborn Coffee shares are held by company insiders. Comparatively, 11.8% of FAT Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Reborn Coffee has a beta of 3.08, meaning that its stock price is 208% more volatile than the S&P 500. Comparatively, FAT Brands has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500.

Summary

FAT Brands beats Reborn Coffee on 6 of the 11 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 FAT Brands

FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Holdings, LLC.