Analyzing TH International (NASDAQ:THCH) & Sabre (NASDAQ:SABR)

TH International (NASDAQ:THCH) and Sabre (NASDAQ:SABR) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	1	0	0	0	1.00
Sabre	1	3	1	0	2.00

Sabre has a consensus price target of $1.75, suggesting a potential downside of 22.91%. Given Sabre’s stronger consensus rating and higher possible upside, analysts clearly believe Sabre is more favorable than TH International.

Insider & Institutional Ownership

91.8% of TH International shares are owned by institutional investors. Comparatively, 89.4% of Sabre shares are owned by institutional investors. 2.8% of Sabre shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

TH International has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Sabre has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TH International	$188.21 million	0.22	-$62.13 million	($2.24)	-0.56
Sabre	$2.77 billion	0.33	$524.62 million	$1.65	1.38

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TH International	-42.55%	N/A	-22.27%
Sabre	25.14%	N/A	-2.12%

Summary

Sabre beats TH International on 12 of the 13 factors compared between the two stocks.

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.

About Sabre

Sabre Corporation, together with its subsidiaries, operates as software and technology company for travel industry in the United States, Europe, Asia-Pacific, and internationally. It operates through two segments: Travel Solutions and Hospitality Solutions. The Travel Solutions segment operates a business-to-business travel marketplace that offers travel content, such as inventory, prices, and availability from a range of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines, and tour operators with a network of travel buyers comprising online and offline travel agencies, travel management companies, and corporate travel departments. This segment provides a portfolio of software technology products and solutions through software-as-a-service (SaaS) and hosted delivery models to airlines and other travel suppliers. Its products include reservation systems for carriers, commercial and operations products, agency solutions, and data-driven intelligence solutions. Its Hospitality Solutions segment provides software and solutions to hoteliers through SaaS and hosted delivery models. Sabre Corporation was incorporated in 2006 and is headquartered in Southlake, Texas.