Reborn Coffee (NASDAQ:REBN) & Potbelly (NASDAQ:PBPB) Head-To-Head Comparison

Potbelly (NASDAQ:PBPB) and Reborn Coffee (NASDAQ:REBN) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

72.6% of Potbelly shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 9.1% of Potbelly shares are held by company insiders. Comparatively, 43.1% of Reborn Coffee shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Potbelly	8.14%	18.69%	2.41%
Reborn Coffee	-67.56%	-171.86%	-40.14%

Analyst Recommendations

This is a breakdown of current recommendations for Potbelly and Reborn Coffee, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Potbelly	0	1	2	0	2.67
Reborn Coffee	0	0	0	0	0.00

Potbelly presently has a consensus price target of $16.00, suggesting a potential upside of 67.36%. Given Potbelly’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Potbelly is more favorable than Reborn Coffee.

Risk and Volatility

Potbelly has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.69, indicating that its share price is 169% more volatile than the S&P 500.

Earnings & Valuation

This table compares Potbelly and Reborn Coffee”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Potbelly	$471.72 million	0.61	$5.12 million	$1.25	7.65
Reborn Coffee	$5.95 million	1.08	-$4.00 million	($1.45)	-1.21

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

Summary

Potbelly beats Reborn Coffee on 11 of the 14 factors compared between the two stocks.

About Potbelly

Potbelly Corporation, through its subsidiaries, owns, operates, and franchises Potbelly sandwich shops in the United States. The company was formerly known as Potbelly Sandwich Works, Inc. and changed its name to Potbelly Corporation in 2002. Potbelly Corporation was founded in 1977 and is headquartered in Chicago, Illinois.

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.