Comparing Luckin Coffee (OTCMKTS:LKNCY) and Pinstripes (NYSE:PNST)

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

Profitability

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

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

Analyst Recommendations

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

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

Pinstripes has a consensus price target of $6.00, indicating a potential upside of 118.18%. Given Pinstripes’ higher possible upside, analysts clearly believe Pinstripes is more favorable than Luckin Coffee.

Institutional & Insider Ownership

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

Earnings & Valuation

This table compares Luckin Coffee and Pinstripes’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luckin Coffee	$3.51 billion	1.75	$401.12 million	$1.20	18.39
Pinstripes	N/A	N/A	N/A	N/A	N/A

Luckin Coffee has higher revenue and earnings than Pinstripes.

Volatility and Risk

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

Summary

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

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.

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.