Reborn Coffee (NASDAQ:REBN) versus MGM Resorts International (NYSE:MGM) Critical Review

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

Risk & Volatility

MGM Resorts International has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGM Resorts International	2.40%	23.30%	1.90%
Reborn Coffee	-75.59%	-1,131.84%	-78.39%

Insider and Institutional Ownership

68.1% of MGM Resorts International shares are owned by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are owned by institutional investors. 3.4% of MGM Resorts International shares are owned by company insiders. Comparatively, 29.3% of Reborn Coffee shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares MGM Resorts International 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
MGM Resorts International	$17.76 billion	0.60	$205.86 million	$1.65	25.69
Reborn Coffee	$8.10 million	1.28	-$9.14 million	($1.86)	-0.68

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

Analyst Recommendations

This is a summary of current ratings and price targets for MGM Resorts International and Reborn Coffee, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGM Resorts International	2	8	10	2	2.55
Reborn Coffee	1	0	0	0	1.00

MGM Resorts International presently has a consensus target price of $53.37, indicating a potential upside of 25.90%. Given MGM Resorts International’s stronger consensus rating and higher probable upside, analysts plainly believe MGM Resorts International is more favorable than Reborn Coffee.

Summary

MGM Resorts International beats Reborn Coffee on 12 of the 15 factors compared between the two stocks.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.

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.