Financial Comparison: TH International (NASDAQ:THCH) & Yum China (NYSE:YUMC)

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

Earnings and Valuation

This table compares Yum China and TH International’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yum China	$10.98 billion	1.27	$827.00 million	$1.99	17.96
TH International	$221.94 million	0.84	-$123.81 million	($0.80)	-1.40

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Yum China and TH International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yum China	0	1	3	0	2.75
TH International	0	0	0	0	N/A

Yum China presently has a consensus target price of $54.65, indicating a potential upside of 52.89%. Given Yum China’s higher possible upside, equities research analysts clearly believe Yum China is more favorable than TH International.

Volatility & Risk

Yum China has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, TH International has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yum China	7.49%	11.90%	7.11%
TH International	-55.72%	-1,859.11%	-19.97%

Institutional & Insider Ownership

85.6% of Yum China shares are held by institutional investors. Comparatively, 91.9% of TH International shares are held by institutional investors. 0.3% of Yum China shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Yum China beats TH International on 12 of the 13 factors compared between the two stocks.

About Yum China

Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People's Republic of China. The company operates through KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services. Yum China Holdings, Inc. was founded in 1987 and is headquartered in Shanghai, the People's Republic of China.

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.