TH International (NASDAQ:THCH) and CAVA Group (NYSE:CAVA) Critical Review

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

Valuation & Earnings

This table compares TH International and CAVA Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TH International	$1.39 billion	0.06	-$123.81 million	($1.75)	-1.54
CAVA Group	$963.71 million	11.64	$13.28 million	$1.10	88.21

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

Analyst Ratings

This is a summary of recent recommendations and price targets for TH International and CAVA Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	0	0	0	0	0.00
CAVA Group	0	5	12	0	2.71

CAVA Group has a consensus price target of $122.44, indicating a potential upside of 26.19%. Given CAVA Group’s stronger consensus rating and higher possible upside, analysts clearly believe CAVA Group is more favorable than TH International.

Volatility & Risk

TH International has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, CAVA Group has a beta of 3.28, indicating that its stock price is 228% more volatile than the S&P 500.

Institutional and Insider Ownership

91.8% of TH International shares are held by institutional investors. Comparatively, 73.2% of CAVA Group shares are held by institutional investors. 6.8% of CAVA Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TH International	-40.57%	N/A	-16.23%
CAVA Group	5.88%	9.10%	5.24%

Summary

CAVA Group beats TH International on 12 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 CAVA Group

CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.