Analyzing Reborn Coffee (NASDAQ:REBN) & CAVA Group (NYSE:CAVA)

Reborn Coffee (NASDAQ:REBN) and CAVA Group (NYSE:CAVA) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and target prices for Reborn Coffee and CAVA Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reborn Coffee	0	0	0	0	N/A
CAVA Group	0	4	10	0	2.71

CAVA Group has a consensus price target of $60.42, indicating a potential downside of 18.59%. Given CAVA Group’s higher possible upside, analysts plainly believe CAVA Group is more favorable than Reborn Coffee.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reborn Coffee	-67.15%	-182.98%	-42.46%
CAVA Group	1.82%	4.28%	1.50%

Valuation and Earnings

This table compares Reborn Coffee and CAVA Group’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	0.61	-$4.00 million	($1.99)	-0.87
CAVA Group	$728.70 million	11.61	$13.28 million	N/A	N/A

CAVA Group has higher revenue and earnings than Reborn Coffee.

Institutional & Insider Ownership

1.8% of Reborn Coffee shares are held by institutional investors. Comparatively, 73.2% of CAVA Group shares are held by institutional investors. 56.1% of Reborn Coffee shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

CAVA Group beats Reborn Coffee on 9 of the 10 factors compared between the two stocks.

About Reborn Coffee

Reborn Coffee, Inc. 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. Reborn Coffee, Inc. was founded in 2014 and is based in Brea, California.

About CAVA Group

CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.