Analyzing Pinstripes (NYSE:PNST) & Luckin Coffee (OTCMKTS:LKNCY)

Pinstripes (NYSE:PNST) and Luckin Coffee (OTCMKTS:LKNCY) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Risk and Volatility

Pinstripes has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, Luckin Coffee has a beta of -0.57, suggesting that its stock price is 157% less volatile than the S&P 500.

Institutional and Insider Ownership

56.8% of Pinstripes shares are held by institutional investors. Comparatively, 0.5% of Luckin Coffee shares are held by institutional investors. 22.8% of Pinstripes shares are held by company insiders. Comparatively, 2.7% of Luckin Coffee shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Pinstripes and Luckin Coffee, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinstripes	0	0	3	0	3.00
Luckin Coffee	0	0	0	0	N/A

Pinstripes currently has a consensus target price of $6.00, suggesting a potential upside of 109.79%. Given Pinstripes’ higher probable upside, analysts clearly believe Pinstripes is more favorable than Luckin Coffee.

Earnings & Valuation

This table compares Pinstripes and Luckin Coffee’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinstripes	N/A	N/A	N/A	N/A	N/A
Luckin Coffee	$3.51 billion	1.72	$401.12 million	$1.20	18.04

Luckin Coffee has higher revenue and earnings than Pinstripes.

Profitability

This table compares Pinstripes and Luckin Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinstripes	N/A	N/A	-8.99%
Luckin Coffee	11.40%	44.71%	20.63%

Summary

Pinstripes beats Luckin Coffee on 5 of the 9 factors compared between the two stocks.

About Pinstripes

Pinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.

About Luckin Coffee

Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.