Reviewing Kona Grill (OTCMKTS:KONAQ) and TH International (NASDAQ:THCH)

TH International (NASDAQ:THCH) and Kona Grill (OTCMKTS:KONAQ) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

91.9% of TH International shares are owned by institutional investors. 31.5% of Kona Grill shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

TH International has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Kona Grill has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Valuation & Earnings

This table compares TH International and Kona Grill’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TH International	$221.94 million	0.22	-$123.42 million	($0.80)	-1.39
Kona Grill	$156.94 million	0.01	-$31.97 million	N/A	N/A

Kona Grill has lower revenue, but higher earnings than TH International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TH International	-55.72%	-1,859.11%	-19.98%
Kona Grill	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations for TH International and Kona Grill, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	0	0	0	0	N/A
Kona Grill	0	0	0	0	N/A

Summary

Kona Grill beats TH International on 6 of the 9 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 is based in Shanghai, the People's Republic of China. TH International Limited is a subsidiary of Tim Hortons Inc.

About Kona Grill

Kona Grill, Inc. owns and operates upscale casual restaurants under the Kona Grill brand name. As of April 30, 2019, it operated 27 full-service restaurants in the United States. On April 30, 2019, Kona Grill, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company is based in Scottsdale, Arizona.