Head-To-Head Analysis: TH International (NASDAQ:THCH) versus Kona Grill (OTCMKTS:KONAQ)

Kona Grill (OTCMKTS:KONAQ) and TH International (NASDAQ:THCH) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Volatility and Risk

Kona Grill has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, TH International has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kona Grill and TH International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kona Grill	0	0	0	0	N/A
TH International	0	0	0	0	N/A

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kona Grill	N/A	N/A	N/A
TH International	-55.72%	-1,859.11%	-19.97%

Institutional and Insider Ownership

91.8% of TH International shares are owned by institutional investors. 31.5% of Kona Grill shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Kona Grill and TH International’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kona Grill	$156.94 million	0.00	-$31.97 million	N/A	N/A
TH International	$1.58 billion	0.03	-$123.81 million	($0.80)	-1.43

Kona Grill has higher earnings, but lower revenue than TH International.

Summary

Kona Grill beats TH International on 6 of the 8 factors compared between the two stocks.

About Kona Grill

Kona Grill, Inc. owns and operates upscale casual restaurants under the Kona Grill brand name. As of April 30, 2019, it operated 27 full-service restaurants in the United States. On April 30, 2019, Kona Grill, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company is based in Scottsdale, Arizona.

About TH International

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.