Red Robin Gourmet Burgers (NASDAQ:RRGB – Get Free Report) and TH International (NASDAQ:THCH – Get Free Report) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.
Insider & Institutional Ownership
84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. Comparatively, 91.9% of TH International shares are owned by institutional investors. 3.2% of Red Robin Gourmet Burgers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Red Robin Gourmet Burgers has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500. Comparatively, TH International has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Red Robin Gourmet Burgers | 0 | 1 | 3 | 0 | 2.75 |
TH International | 0 | 0 | 0 | 0 | N/A |
Red Robin Gourmet Burgers presently has a consensus price target of $13.13, suggesting a potential upside of 302.61%. Given Red Robin Gourmet Burgers’ higher possible upside, research analysts plainly believe Red Robin Gourmet Burgers is more favorable than TH International.
Profitability
This table compares Red Robin Gourmet Burgers and TH International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Red Robin Gourmet Burgers | -3.20% | N/A | -5.83% |
TH International | -43.33% | N/A | -17.56% |
Earnings and Valuation
This table compares Red Robin Gourmet Burgers and TH International”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Red Robin Gourmet Burgers | $1.30 billion | 0.04 | -$21.23 million | ($1.76) | -1.85 |
TH International | $221.94 million | 0.47 | -$123.81 million | ($0.74) | -0.86 |
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.
Summary
Red Robin Gourmet Burgers beats TH International on 8 of the 12 factors compared between the two stocks.
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.
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.
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