Head to Head Analysis: TH International (NASDAQ:THCH) and Restaurant Brands International (NYSE:QSR)

TH International (NASDAQ:THCH) and Restaurant Brands International (NYSE:QSR) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Volatility and Risk

TH International has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Valuation and Earnings

This table compares TH International and Restaurant Brands International”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	$190.59 million	N/A	-$57.32 million	($1.43)	-1.62
Restaurant Brands International	$8.41 billion	2.82	$1.02 billion	$2.81	24.36

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

Insider & Institutional Ownership

91.9% of TH International shares are owned by institutional investors. Comparatively, 82.3% of Restaurant Brands International shares are owned by institutional investors. 1.3% of Restaurant Brands International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for TH International and Restaurant Brands International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	1	0	0	0	1.00
Restaurant Brands International	1	11	11	0	2.43

Restaurant Brands International has a consensus target price of $76.57, indicating a potential upside of 11.85%. Given Restaurant Brands International’s stronger consensus rating and higher probable upside, analysts plainly believe Restaurant Brands International is more favorable than TH International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TH International	-25.22%	N/A	-17.98%
Restaurant Brands International	9.95%	32.43%	6.40%

Summary

Restaurant Brands International beats TH International on 12 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 Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.