TH International (THCH) & Its Peers Financial Review

TH International (NASDAQ:THCH) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its peers? We will compare TH International to similar businesses based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares TH International and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TH International	-42.55%	N/A	-22.27%
TH International Competitors	2.32%	-40.06%	2.12%

Institutional and Insider Ownership

91.8% of TH International shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for TH International and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	1	0	0	0	1.00
TH International Competitors	3795	17224	25510	901	2.50

As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 56.85%. Given TH International’s peers stronger consensus rating and higher possible upside, analysts plainly believe TH International has less favorable growth aspects than its peers.

Volatility & Risk

TH International has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, TH International’s peers have a beta of 1.38, suggesting that their average share price is 38% more volatile than the S&P 500.

Valuation and Earnings

This table compares TH International and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TH International	$188.21 million	-$62.13 million	-0.62
TH International Competitors	$3.31 billion	$250.20 million	-153.55

TH International’s peers have higher revenue and earnings than TH International. TH International is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

TH International peers beat TH International on 10 of the 13 factors compared.

TH International Company Profile

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.