TH International (NASDAQ:THCH) vs. Chipotle Mexican Grill (NYSE:CMG) Head to Head Contrast

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

Profitability

This table compares TH International and Chipotle Mexican Grill’s 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%
Chipotle Mexican Grill	12.88%	47.99%	17.15%

Valuation and Earnings

This table compares TH International and Chipotle Mexican Grill”s revenue, earnings per share (EPS) 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)	-1.52
Chipotle Mexican Grill	$11.93 billion	3.56	$1.54 billion	$1.14	28.63

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

Analyst Recommendations

This is a summary of current ratings and target prices for TH International and Chipotle Mexican Grill, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	1	0	0	0	1.00
Chipotle Mexican Grill	1	11	23	0	2.63

Chipotle Mexican Grill has a consensus target price of $47.37, indicating a potential upside of 45.12%. Given Chipotle Mexican Grill’s stronger consensus rating and higher probable upside, analysts clearly believe Chipotle Mexican Grill is more favorable than TH International.

Insider & Institutional Ownership

91.9% of TH International shares are owned by institutional investors. Comparatively, 91.3% of Chipotle Mexican Grill shares are owned by institutional investors. 0.8% of Chipotle Mexican Grill shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

TH International has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Chipotle Mexican Grill has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Summary

Chipotle Mexican Grill beats TH International on 12 of the 13 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 Chipotle Mexican Grill

Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, and the United Kingdom. Chipotle Mexican Grill, Inc. was founded in 1993 and is headquartered in Newport Beach, California.