Reborn Coffee (NASDAQ:REBN) vs. BBB Foods (NYSE:TBBB) Critical Comparison

Reborn Coffee (NASDAQ:REBN) and BBB Foods (NYSE:TBBB) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Reborn Coffee and BBB Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	1	0	0	0	1.00
BBB Foods	1	4	3	0	2.25

BBB Foods has a consensus target price of $37.00, indicating a potential downside of 0.99%. Given BBB Foods’ stronger consensus rating and higher possible upside, analysts clearly believe BBB Foods is more favorable than Reborn Coffee.

Profitability

This table compares Reborn Coffee and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-191.48%	-995.56%	-170.77%
BBB Foods	-2.61%	-44.56%	-7.47%

Earnings and Valuation

This table compares Reborn Coffee and BBB Foods”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reborn Coffee	$5.93 million	1.66	-$4.81 million	($2.56)	-0.64
BBB Foods	$3.15 billion	1.35	$18.36 million	($0.84)	-44.49

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

Risk & Volatility

Reborn Coffee has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500. Comparatively, BBB Foods has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500.

Institutional and Insider Ownership

1.8% of Reborn Coffee shares are owned by institutional investors. Comparatively, 8.4% of BBB Foods shares are owned by institutional investors. 24.0% of Reborn Coffee shares are owned by 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.

Summary

BBB Foods beats Reborn Coffee on 10 of the 14 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 BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.