Comparing TH International (NASDAQ:THCH) and Dine Brands Global (NYSE:DIN)

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

Analyst Ratings

This is a summary of recent ratings and target prices for TH International and Dine Brands Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	0	0	0	0	N/A
Dine Brands Global	0	2	5	0	2.71

Dine Brands Global has a consensus target price of $58.57, indicating a potential upside of 57.03%. Given Dine Brands Global’s higher possible upside, analysts plainly believe Dine Brands Global is more favorable than TH International.

Risk & Volatility

TH International has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, Dine Brands Global has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TH International	-53.46%	-1,859.11%	-20.48%
Dine Brands Global	10.59%	-35.31%	5.49%

Earnings & Valuation

This table compares TH International and Dine Brands Global’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TH International	$221.94 million	0.58	-$123.81 million	($0.74)	-1.04
Dine Brands Global	$831.07 million	0.69	$97.18 million	$5.62	6.64

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

Institutional & Insider Ownership

91.9% of TH International shares are held by institutional investors. Comparatively, 92.8% of Dine Brands Global shares are held by institutional investors. 3.8% of Dine Brands Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Dine Brands Global beats TH International on 13 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 Dine Brands Global

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, and operates restaurants in the United States and internationally. The company operates through six segments: Applebee's Franchise Operations, International House of Pancakes (IHOP) Franchise Solutions, Fuzzy's franchise operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. It owns and franchises three restaurant concepts, including Applebee's Neighborhood Grill + Bar within the casual dining category; and IHOP in the family dining category of the restaurant industry; Fuzzy's Taco Shop within the fast-casual dining category. In addition, its Applebee's restaurants offer American fare with drinks and local draft beers; IHOP restaurants provide full table services, food and beverage; and Fuzzy's Taco Shop offers baja-style mexican food like baja tacos, chips and queso, guacamole and salsa made in house, and a full bar including margaritas, and cold draft beer. The company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Pasadena, California.