Financial Survey: Reborn Coffee (NASDAQ:REBN) versus Planet Fitness (NYSE:PLNT)

Planet Fitness (NYSE:PLNT) and Reborn Coffee (NASDAQ:REBN) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Risk & Volatility

Planet Fitness has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Planet Fitness	16.88%	-59.46%	8.60%
Reborn Coffee	-37.56%	-354.56%	-42.27%

Insider & Institutional Ownership

95.5% of Planet Fitness shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 0.9% of Planet Fitness shares are held by company insiders. Comparatively, 29.3% of Reborn Coffee shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Planet Fitness and Reborn Coffee”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Planet Fitness	$1.32 billion	2.68	$219.10 million	$2.95	15.90
Reborn Coffee	$8.10 million	1.62	-$9.14 million	($0.44)	-3.45

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Planet Fitness and Reborn Coffee, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Planet Fitness	1	9	11	1	2.55
Reborn Coffee	1	0	0	0	1.00

Planet Fitness presently has a consensus target price of $69.34, suggesting a potential upside of 47.81%. Given Planet Fitness’ stronger consensus rating and higher probable upside, research analysts clearly believe Planet Fitness is more favorable than Reborn Coffee.

Summary

Planet Fitness beats Reborn Coffee on 12 of the 14 factors compared between the two stocks.

About Planet Fitness

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.

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.