Luckin Coffee (OTCMKTS:LKNCY) versus Pinstripes (NYSE:PNST) Critical Analysis

Luckin Coffee (OTCMKTS:LKNCY) and Pinstripes (NYSE:PNST) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Luckin Coffee and Pinstripes’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luckin Coffee	$3.51 billion	1.69	$401.12 million	$1.20	17.77
Pinstripes	$116.70 million	1.00	N/A	N/A	N/A

Luckin Coffee has higher revenue and earnings than Pinstripes.

Analyst Ratings

This is a breakdown of recent ratings for Luckin Coffee and Pinstripes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luckin Coffee	0	0	0	0	N/A
Pinstripes	0	0	3	0	3.00

Pinstripes has a consensus price target of $6.00, indicating a potential upside of 105.48%. Given Pinstripes’ higher probable upside, analysts plainly believe Pinstripes is more favorable than Luckin Coffee.

Profitability

This table compares Luckin Coffee and Pinstripes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luckin Coffee	11.40%	44.71%	20.63%
Pinstripes	N/A	N/A	-8.99%

Institutional and Insider Ownership

0.5% of Luckin Coffee shares are owned by institutional investors. Comparatively, 56.8% of Pinstripes shares are owned by institutional investors. 2.7% of Luckin Coffee shares are owned by company insiders. Comparatively, 22.8% of Pinstripes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Luckin Coffee has a beta of -0.57, meaning that its stock price is 157% less volatile than the S&P 500. Comparatively, Pinstripes has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500.

About Luckin Coffee

Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.

About Pinstripes

Pinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.