Reborn Coffee (NASDAQ:REBN – Get Free Report) and Inspired Entertainment (NASDAQ:INSE – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Reborn Coffee and Inspired Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reborn Coffee | -75.59% | -1,131.84% | -78.39% |
| Inspired Entertainment | -3.34% | -30.08% | 0.92% |
Earnings and Valuation
This table compares Reborn Coffee and Inspired Entertainment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reborn Coffee | $8.10 million | 0.91 | -$9.14 million | ($1.86) | -0.48 |
| Inspired Entertainment | $281.40 million | 0.49 | -$17.00 million | ($0.33) | -15.71 |
Reborn Coffee has higher earnings, but lower revenue than Inspired Entertainment. Inspired Entertainment is trading at a lower price-to-earnings ratio than Reborn Coffee, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Reborn Coffee and Inspired Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reborn Coffee | 1 | 0 | 0 | 0 | 1.00 |
| Inspired Entertainment | 1 | 1 | 1 | 0 | 2.00 |
Inspired Entertainment has a consensus price target of $20.00, indicating a potential upside of 285.80%. Given Inspired Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Inspired Entertainment is more favorable than Reborn Coffee.
Risk & Volatility
Reborn Coffee has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Insider and Institutional Ownership
1.8% of Reborn Coffee shares are held by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are held by institutional investors. 29.3% of Reborn Coffee shares are held by company insiders. Comparatively, 14.4% of Inspired Entertainment 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.
Summary
Inspired Entertainment beats Reborn Coffee on 9 of the 14 factors compared between the two stocks.
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.
About Inspired Entertainment
Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.
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