TH International (NASDAQ:THCH – Get Free Report) and El Pollo Loco (NASDAQ:LOCO – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Volatility and Risk
TH International has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, El Pollo Loco has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
Institutional and Insider Ownership
91.8% of TH International shares are owned by institutional investors. Comparatively, 81.3% of El Pollo Loco shares are owned by institutional investors. 1.9% of El Pollo Loco shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TH International | $1.45 billion | 0.07 | -$123.81 million | ($2.55) | -1.22 |
| El Pollo Loco | $470.97 million | 0.75 | $25.55 million | $0.79 | 14.97 |
El Pollo Loco has lower revenue, but higher earnings than TH International. TH International is trading at a lower price-to-earnings ratio than El Pollo Loco, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and price targets for TH International and El Pollo Loco, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TH International | 0 | 0 | 0 | 0 | 0.00 |
| El Pollo Loco | 0 | 2 | 0 | 0 | 2.00 |
El Pollo Loco has a consensus price target of $13.00, suggesting a potential upside of 9.89%. Given El Pollo Loco’s stronger consensus rating and higher possible upside, analysts clearly believe El Pollo Loco is more favorable than TH International.
Profitability
This table compares TH International and El Pollo Loco’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% |
| El Pollo Loco | 5.11% | 10.34% | 4.40% |
Summary
El Pollo Loco beats TH International on 11 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 El Pollo Loco
El Pollo Loco Holdings, Inc., through its subsidiary, El Pollo Loco, Inc., develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name. It operates and franchises restaurants located in California, Nevada, Arizona, Texas, Colorado, Utah, and Louisiana. It also licenses its brand to restaurants in the Philippines. The company was formerly known as Chicken Acquisition Corp. and changed its name to El Pollo Loco Holdings, Inc. in April 2014. El Pollo Loco Holdings, Inc. was founded in 1975 and is headquartered in Costa Mesa, California.
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