Reviewing TH International (NASDAQ:THCH) & Meritage Hospitality Group (OTCMKTS:MHGU)

TH International (NASDAQ:THCHGet Free Report) and Meritage Hospitality Group (OTCMKTS:MHGUGet Free Report) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Earnings and Valuation

This table compares TH International and Meritage Hospitality Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TH International $1.49 billion 0.04 -$110.36 million ($0.76) -1.81
Meritage Hospitality Group $626.04 million 0.20 $8.48 million $0.12 155.85

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

Analyst Ratings

This is a summary of recent recommendations and price targets for TH International and Meritage Hospitality Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TH International 0 0 0 0 N/A
Meritage Hospitality Group 0 0 1 0 3.00

Meritage Hospitality Group has a consensus price target of $24.00, indicating a potential upside of 28.34%. Given Meritage Hospitality Group’s higher possible upside, analysts plainly believe Meritage Hospitality Group is more favorable than TH International.

Risk & Volatility

TH International has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Meritage Hospitality Group has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Insider and Institutional Ownership

52.0% of TH International shares are owned by institutional investors. 67.8% of Meritage Hospitality Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
TH International -53.26% -1,859.11% -18.57%
Meritage Hospitality Group 0.57% 3.17% 0.47%

Summary

Meritage Hospitality Group beats TH International on 10 of the 13 factors compared between the two stocks.

About TH International

(Get Free Report)

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.

About Meritage Hospitality Group

(Get Free Report)

Meritage Hospitality Group Inc. operates quick-service and casual dining restaurants. The company operates restaurants under the Wendy's, Morning Belle, and Stan's Tacos, as well as Taco John's brand names in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia. The company was formerly known as Thomas Edison Inns, Inc. and changed its name to Meritage Hospitality Group Inc. in May 1996. Meritage Hospitality Group Inc. was incorporated in 1986 and is based in Grand Rapids, Michigan.

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