Reviewing Travel + Leisure (NYSE:TNL) and Reborn Coffee (NASDAQ:REBN)

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

Insider and Institutional Ownership

87.5% of Travel + Leisure shares are held by institutional investors. Comparatively, 1.8% of Reborn Coffee shares are held by institutional investors. 4.0% of Travel + Leisure shares are held by company insiders. Comparatively, 29.3% 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 is poised for long-term growth.

Profitability

This table compares Travel + Leisure and Reborn Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travel + Leisure	5.81%	-46.91%	6.59%
Reborn Coffee	-37.56%	-307.84%	-42.87%

Risk and Volatility

Travel + Leisure has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Reborn Coffee has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Travel + Leisure and Reborn Coffee, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travel + Leisure	0	2	11	0	2.85
Reborn Coffee	1	0	0	0	1.00

Travel + Leisure presently has a consensus target price of $89.18, suggesting a potential upside of 36.55%. Given Travel + Leisure’s stronger consensus rating and higher probable upside, equities analysts plainly believe Travel + Leisure is more favorable than Reborn Coffee.

Earnings and Valuation

This table compares Travel + Leisure and Reborn Coffee”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travel + Leisure	$4.02 billion	0.99	$230.00 million	$3.66	17.85
Reborn Coffee	$8.10 million	0.81	-$9.14 million	($1.86)	-0.43

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

Summary

Travel + Leisure beats Reborn Coffee on 12 of the 14 factors compared between the two stocks.

About Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.

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.