National Beverage (NASDAQ:FIZZ) vs. Luckin Coffee (OTCMKTS:LKNCY) Critical Review

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

Institutional and Insider Ownership

24.0% of National Beverage shares are held by institutional investors. Comparatively, 0.5% of Luckin Coffee shares are held by institutional investors. 74.8% of National Beverage shares are held by insiders. Comparatively, 2.7% of Luckin Coffee shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for National Beverage and Luckin Coffee, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Beverage	1	0	0	0	1.00
Luckin Coffee	0	0	0	0	0.00

National Beverage presently has a consensus price target of $45.00, suggesting a potential downside of 4.23%. Given National Beverage’s stronger consensus rating and higher probable upside, equities research analysts clearly believe National Beverage is more favorable than Luckin Coffee.

Earnings & Valuation

This table compares National Beverage and Luckin Coffee”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Beverage	$1.20 billion	3.66	$186.82 million	$2.00	23.50
Luckin Coffee	$4.72 billion	2.32	$401.71 million	$1.60	24.13

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

Volatility and Risk

National Beverage has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Luckin Coffee has a beta of -0.25, meaning that its stock price is 125% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Beverage	15.55%	49.48%	31.84%
Luckin Coffee	9.58%	36.55%	17.85%

Summary

National Beverage beats Luckin Coffee on 10 of the 13 factors compared between the two stocks.

About National Beverage

National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada. The company's Power+ brand portfolio offers sparkling water products under the LaCroix, LaCroix Cúrate, and LaCroix NiCola; non-carbonated flavored water under the Clear Fruit; energy drink and shots under the Rip It; juice and juice-based products under Everfresh, Everfresh Premier Varietals, and Mr. Pure; and carbonated soft drinks under Shasta and Faygo brands. It serves retailers, as well as various smaller up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. National Beverage Corp. was incorporated in 1985 and is headquartered in Fort Lauderdale, Florida.

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.