WD-40 (NASDAQ:WDFC – Get Free Report) and Reborn Coffee (NASDAQ:REBN – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility and Risk
WD-40 has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.13, suggesting that its stock price is 113% more volatile than the S&P 500.
Earnings and Valuation
This table compares WD-40 and Reborn Coffee”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WD-40 | $619.98 million | 5.50 | $90.99 million | $6.57 | 38.50 |
| Reborn Coffee | $5.93 million | 1.60 | -$4.81 million | ($2.56) | -0.62 |
WD-40 has higher revenue and earnings than Reborn Coffee. Reborn Coffee is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares WD-40 and Reborn Coffee’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WD-40 | 14.42% | 30.10% | 16.79% |
| Reborn Coffee | -191.48% | -995.56% | -170.77% |
Analyst Ratings
This is a summary of current ratings and price targets for WD-40 and Reborn Coffee, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WD-40 | 0 | 1 | 1 | 0 | 2.50 |
| Reborn Coffee | 1 | 0 | 0 | 0 | 1.00 |
WD-40 presently has a consensus target price of $300.00, suggesting a potential upside of 18.60%. Given WD-40’s stronger consensus rating and higher possible upside, analysts plainly believe WD-40 is more favorable than Reborn Coffee.
Insider and Institutional Ownership
91.5% of WD-40 shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 0.8% of WD-40 shares are held by insiders. Comparatively, 24.0% of Reborn Coffee shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
WD-40 beats Reborn Coffee on 12 of the 14 factors compared between the two stocks.
About WD-40
WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.
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.
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