Texas Roadhouse (NASDAQ:TXRH) vs. Reborn Coffee (NASDAQ:REBN) Critical Survey

Texas Roadhouse (NASDAQ:TXRH) and Reborn Coffee (NASDAQ:REBN) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Insider & Institutional Ownership

94.8% of Texas Roadhouse shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 0.5% of Texas Roadhouse 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Roadhouse	$5.37 billion	2.18	$304.88 million	$6.47	27.16
Reborn Coffee	$5.95 million	2.99	-$4.00 million	($1.45)	-3.34

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

Volatility and Risk

Texas Roadhouse has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Texas Roadhouse and Reborn Coffee, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Roadhouse	0	11	12	0	2.52
Reborn Coffee	0	0	0	0	0.00

Texas Roadhouse currently has a consensus price target of $192.50, indicating a potential upside of 9.56%. Given Texas Roadhouse’s stronger consensus rating and higher possible upside, analysts clearly believe Texas Roadhouse is more favorable than Reborn Coffee.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Texas Roadhouse	8.07%	34.02%	15.11%
Reborn Coffee	-67.56%	-171.86%	-40.14%

Summary

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

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

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.