Analyzing TH International (NASDAQ:THCH) and Brinker International (NYSE:EAT)

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

Institutional & Insider Ownership

91.8% of TH International shares are held by institutional investors. 1.4% of Brinker International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Brinker International and TH International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brinker International	$5.38 billion	1.41	$383.10 million	$10.20	17.41
TH International	$188.21 million	0.31	-$62.13 million	($2.12)	-0.83

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

Risk and Volatility

Brinker International has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, TH International has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brinker International	8.07%	123.22%	16.94%
TH International	-38.44%	N/A	-19.46%

Analyst Recommendations

This is a breakdown of recent ratings for Brinker International and TH International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brinker International	0	7	14	0	2.67
TH International	1	0	0	0	1.00

Brinker International currently has a consensus target price of $185.11, indicating a potential upside of 4.27%. Given Brinker International’s stronger consensus rating and higher possible upside, equities analysts plainly believe Brinker International is more favorable than TH International.

Summary

Brinker International beats TH International on 13 of the 14 factors compared between the two stocks.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.

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.