Contrasting Red Robin Gourmet Burgers (NASDAQ:RRGB) and TH International (NASDAQ:THCH)

Red Robin Gourmet Burgers (NASDAQ:RRGB) and TH International (NASDAQ:THCH) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Red Robin Gourmet Burgers and TH International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Robin Gourmet Burgers	0	1	3	0	2.75
TH International	0	0	0	0	N/A

Red Robin Gourmet Burgers currently has a consensus target price of $13.13, suggesting a potential upside of 302.61%. Given Red Robin Gourmet Burgers’ higher possible upside, equities analysts plainly believe Red Robin Gourmet Burgers is more favorable than TH International.

Volatility & Risk

Red Robin Gourmet Burgers has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500. Comparatively, TH International has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.

Earnings & Valuation

This table compares Red Robin Gourmet Burgers and TH International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Robin Gourmet Burgers	$1.30 billion	0.04	-$21.23 million	($1.76)	-1.85
TH International	$221.94 million	0.47	-$123.81 million	($0.74)	-0.86

Red Robin Gourmet Burgers has higher revenue and earnings than TH International. Red Robin Gourmet Burgers 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 Red Robin Gourmet Burgers and TH International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Robin Gourmet Burgers	-3.20%	N/A	-5.83%
TH International	-43.33%	N/A	-17.56%

Institutional and Insider Ownership

84.0% of Red Robin Gourmet Burgers shares are held by institutional investors. Comparatively, 91.9% of TH International shares are held by institutional investors. 3.2% of Red Robin Gourmet Burgers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Red Robin Gourmet Burgers beats TH International on 8 of the 12 factors compared between the two stocks.

About Red Robin Gourmet Burgers

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.

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.