Financial Survey: TH International (NASDAQ:THCH) and Red Robin Gourmet Burgers (NASDAQ:RRGB)

TH International (NASDAQ:THCH) and Red Robin Gourmet Burgers (NASDAQ:RRGB) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Institutional and Insider Ownership

91.9% of TH International shares are owned by institutional investors. Comparatively, 84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. 3.2% of Red Robin Gourmet Burgers shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

TH International has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Red Robin Gourmet Burgers has a beta of 2.75, indicating that its share price is 175% more volatile than the S&P 500.

Valuation & Earnings

This table compares TH International and Red Robin Gourmet Burgers”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TH International	$221.94 million	0.46	-$123.81 million	($0.74)	-0.84
Red Robin Gourmet Burgers	$1.30 billion	0.04	-$21.23 million	($1.76)	-1.75

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

Analyst Ratings

This is a breakdown of current recommendations for TH International and Red Robin Gourmet Burgers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	0	0	0	0	N/A
Red Robin Gourmet Burgers	0	1	3	0	2.75

Red Robin Gourmet Burgers has a consensus target price of $13.13, suggesting a potential upside of 326.14%. Given Red Robin Gourmet Burgers’ higher possible upside, analysts clearly believe Red Robin Gourmet Burgers is more favorable than TH International.

Profitability

This table compares TH International and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TH International	-43.33%	N/A	-17.56%
Red Robin Gourmet Burgers	-3.20%	N/A	-5.83%

Summary

Red Robin Gourmet Burgers beats TH International on 8 of the 11 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 Red Robin Gourmet Burgers

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.