TH International (THCH) and Its Rivals Critical Review

TH International (NASDAQ:THCH) is one of 71 publicly-traded companies in the “Eating places” industry, but how does it weigh in compared to its rivals? We will compare TH International to related companies based on the strength of its risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Insider and Institutional Ownership

52.0% of TH International shares are held by institutional investors. Comparatively, 61.8% of shares of all “Eating places” companies are held by institutional investors. 18.4% of shares of all “Eating places” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

TH International has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, TH International’s rivals have a beta of -5.86, indicating that their average share price is 686% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	0	0	0	0	N/A
TH International Competitors	510	4360	5632	269	2.53

As a group, “Eating places” companies have a potential upside of 17.35%. Given TH International’s rivals higher possible upside, analysts clearly believe TH International has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares TH International and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TH International	$146.59 million	-$110.36 million	-2.48
TH International Competitors	$2.01 billion	$187.59 million	11.10

TH International’s rivals have higher revenue and earnings than TH International. TH International is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares TH International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TH International	-60.68%	-369.61%	-20.66%
TH International Competitors	0.82%	-18.59%	1.91%

Summary

TH International rivals beat TH International on 9 of the 10 factors compared.

TH International Company Profile

TH International Limited operates Tim Hortons coffee shops in mainland China, Hong Kong, and Macau. The company is based in Shanghai, the People's Republic of China. TH International Limited is a subsidiary of Tim Hortons Inc.