Kura Sushi USA (NASDAQ:KRUS) vs. TH International (NASDAQ:THCH) Head-To-Head Contrast

Kura Sushi USA (NASDAQ:KRUS) and TH International (NASDAQ:THCH) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

65.5% of Kura Sushi USA shares are owned by institutional investors. Comparatively, 91.9% of TH International shares are owned by institutional investors. 1.6% of Kura Sushi USA 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.

Analyst Ratings

This is a breakdown of recent ratings for Kura Sushi USA and TH International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kura Sushi USA	0	4	5	0	2.56
TH International	0	0	0	0	N/A

Kura Sushi USA presently has a consensus price target of $73.63, suggesting a potential downside of 26.23%. Given Kura Sushi USA’s higher probable upside, analysts clearly believe Kura Sushi USA is more favorable than TH International.

Earnings & Valuation

This table compares Kura Sushi USA and TH International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kura Sushi USA	$187.43 million	5.99	$1.50 million	($0.07)	-1,425.86
TH International	$221.94 million	0.52	-$123.81 million	($0.57)	-1.21

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

Profitability

This table compares Kura Sushi USA and TH International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kura Sushi USA	-0.30%	-0.07%	-0.04%
TH International	-43.33%	N/A	-17.56%

Risk & Volatility

Kura Sushi USA has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, TH International has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Summary

Kura Sushi USA beats TH International on 9 of the 13 factors compared between the two stocks.

About Kura Sushi USA

Kura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States. The company was formerly known as Kula Sushi USA, Inc. and changed its name to Kura Sushi USA, Inc. in October 2017. The company was founded in 2008 and is headquartered in Irvine, California. Kura Sushi USA, Inc. is a subsidiary of Kura Sushi, Inc.

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.