Head-To-Head Review: Rave Restaurant Group (RAVE) versus Coffee (JVA)

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Rave Restaurant Group (NASDAQ:RAVE) and Coffee (NASDAQ:JVA) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Rave Restaurant Group and Coffee, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rave Restaurant Group 0 0 0 0 N/A
Coffee 0 0 1 0 3.00

Coffee has a consensus price target of $9.00, indicating a potential upside of 145.23%. Given Coffee’s higher probable upside, analysts clearly believe Coffee is more favorable than Rave Restaurant Group.

Valuation & Earnings

This table compares Rave Restaurant Group and Coffee’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rave Restaurant Group $15.12 million 1.08 $1.91 million N/A N/A
Coffee $77.13 million 0.27 $460,000.00 N/A N/A

Rave Restaurant Group has higher earnings, but lower revenue than Coffee.

Profitability

This table compares Rave Restaurant Group and Coffee’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rave Restaurant Group 18.58% 65.94% 30.37%
Coffee 1.13% 3.91% 2.52%

Risk and Volatility

Rave Restaurant Group has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Coffee has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Insider & Institutional Ownership

4.6% of Rave Restaurant Group shares are held by institutional investors. Comparatively, 23.8% of Coffee shares are held by institutional investors. 51.2% of Rave Restaurant Group shares are held by company insiders. Comparatively, 12.0% of Coffee shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Rave Restaurant Group beats Coffee on 6 of the 11 factors compared between the two stocks.

Rave Restaurant Group Company Profile

Rave Restaurant Group, Inc., together with its subsidiaries, operates and franchises pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn trademark. It operates in Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants segments. The company's buffet restaurants are located in free standing buildings or strip centers in retail developments that offer dine-in, carryout, and catering services, as well as delivery services. Its delco restaurants provide delivery and carryout services that are located in shopping centers or other in-line retail developments. The company's Express restaurants serve customers through various non-traditional points of sale that are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities. Rave Restaurant Group, Inc. also operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademark. As of September 24, 2018, it owned, operated, and franchised approximately 284 Pie Five Pizza Co. and Pizza Inn restaurants in the United States and internationally. The company was formerly known as Pizza Inn Holdings, Inc. and changed its name to Rave Restaurant Group, Inc. in January 2015. Rave Restaurant Group, Inc. was founded in 1958 and is based in The Colony, Texas.

Coffee Company Profile

Coffee Holding Co., Inc. manufactures, roasts, packages, markets, and distributes roasted and blended coffees in the United States, Canada, Australia, England, and China. The company offers wholesale green coffee products, which include unroasted raw beans of approximately 90 varieties that are sold to large, medium, and small roasters, as well as to coffee shop operators. It also roasts, blends, packages, and sells coffee under private labels. As of October 31, 2017, the company supplied private label coffee under approximately 26 labels to wholesalers and retailers in cans, brick packages, and instants of various sizes. In addition, it roasts, blends, and packages company label branded coffee to supermarkets, wholesalers, and individually owned and multi-unit retail customers. Further, the company offers tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was founded in 1971 and is headquartered in Staten Island, New York.

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