Comparing Dutch Bros (NYSE:BROS) and TH International (NASDAQ:THCH)

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

Earnings and Valuation

This table compares TH International and Dutch Bros”s revenue, earnings per share 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)	-1.22
Dutch Bros	$1.64 billion	5.37	$79.84 million	$0.64	83.52

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

Profitability

This table compares TH International and Dutch Bros’ 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%
Dutch Bros	4.87%	9.75%	2.86%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	1	0	0	0	1.00
Dutch Bros	0	4	17	1	2.86

Dutch Bros has a consensus price target of $77.05, indicating a potential upside of 44.15%. Given Dutch Bros’ stronger consensus rating and higher probable upside, analysts clearly believe Dutch Bros is more favorable than TH International.

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, Dutch Bros has a beta of 2.54, indicating that its stock price is 154% more volatile than the S&P 500.

Institutional and Insider Ownership

91.9% of TH International shares are held by institutional investors. Comparatively, 85.5% of Dutch Bros shares are held by institutional investors. 42.4% of Dutch Bros shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Dutch Bros beats TH International on 13 of the 14 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 Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.