Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) and Reborn Coffee (NASDAQ:REBN – Get Free Report) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Earnings and Valuation
This table compares Dave & Buster’s Entertainment and Reborn Coffee”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dave & Buster’s Entertainment | $2.21 billion | 0.70 | $126.90 million | $2.74 | 14.35 |
| Reborn Coffee | $5.95 million | 0.68 | -$4.00 million | ($1.45) | -0.76 |
Dave & Buster’s Entertainment has higher revenue and earnings than Reborn Coffee. Reborn Coffee is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Dave & Buster’s Entertainment and Reborn Coffee, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dave & Buster’s Entertainment | 0 | 4 | 5 | 0 | 2.56 |
| Reborn Coffee | 0 | 0 | 0 | 0 | 0.00 |
Dave & Buster’s Entertainment currently has a consensus target price of $61.57, indicating a potential upside of 56.59%. Given Dave & Buster’s Entertainment’s stronger consensus rating and higher possible upside, research analysts clearly believe Dave & Buster’s Entertainment is more favorable than Reborn Coffee.
Profitability
This table compares Dave & Buster’s Entertainment and Reborn Coffee’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dave & Buster’s Entertainment | 5.10% | 51.75% | 3.57% |
| Reborn Coffee | -67.56% | -171.86% | -40.14% |
Institutional and Insider Ownership
91.5% of Dave & Buster’s Entertainment shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 1.6% of Dave & Buster’s Entertainment 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Dave & Buster’s Entertainment beats Reborn Coffee on 11 of the 13 factors compared between the two stocks.
About Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
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.
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