Contrasting TH International (NASDAQ:THCH) & Chipotle Mexican Grill (NYSE:CMG)

Chipotle Mexican Grill (NYSE:CMG) and TH International (NASDAQ:THCH) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Volatility & Risk

Chipotle Mexican Grill has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, TH International has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares Chipotle Mexican Grill and TH International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chipotle Mexican Grill	12.88%	47.99%	17.15%
TH International	-25.22%	N/A	-17.98%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Chipotle Mexican Grill and TH International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chipotle Mexican Grill	1	11	23	0	2.63
TH International	1	0	0	0	1.00

Chipotle Mexican Grill presently has a consensus target price of $47.37, suggesting a potential upside of 39.18%. Given Chipotle Mexican Grill’s stronger consensus rating and higher possible upside, analysts plainly believe Chipotle Mexican Grill is more favorable than TH International.

Institutional & Insider Ownership

91.3% of Chipotle Mexican Grill shares are owned by institutional investors. Comparatively, 91.8% of TH International shares are owned by institutional investors. 1.0% of Chipotle Mexican Grill shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Chipotle Mexican Grill and TH International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chipotle Mexican Grill	$11.93 billion	3.72	$1.54 billion	$1.14	29.85
TH International	$1.34 billion	0.05	-$57.32 million	($1.43)	-1.50

Chipotle Mexican Grill has higher revenue and earnings than TH International. TH International is trading at a lower price-to-earnings ratio than Chipotle Mexican Grill, indicating that it is currently the more affordable of the two stocks.

Summary

Chipotle Mexican Grill beats TH International on 13 of the 14 factors compared between the two stocks.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, and the United Kingdom. Chipotle Mexican Grill, Inc. was founded in 1993 and is headquartered in Newport Beach, California.

About TH International

TH International Limited operates Tim Hortons coffee shops in mainland China, Hong Kong, and Macau. The company offers brewed tea, coffee, milk tea, lemonade, hot chocolate, and coffee drinks. It is also involved in franchise related business. The company is based in Shanghai, the People's Republic of China.