TH International (NASDAQ:THCH – Get Free Report) and Noodles & Company (NASDAQ:NDLS – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Valuation & Earnings
This table compares TH International and Noodles & Company’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TH International | $221.94 million | 0.51 | -$123.81 million | ($0.74) | -0.93 |
| Noodles & Company | $503.40 million | 0.15 | -$9.86 million | ($0.29) | -5.93 |
Noodles & Company has higher revenue and earnings than TH International. Noodles & Company is trading at a lower price-to-earnings ratio than TH International, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TH International | 0 | 0 | 0 | 0 | N/A |
| Noodles & Company | 0 | 1 | 2 | 0 | 2.67 |
Noodles & Company has a consensus price target of $3.67, indicating a potential upside of 113.18%. Given Noodles & Company’s higher probable upside, analysts clearly believe Noodles & Company is more favorable than TH International.
Profitability
This table compares TH International and Noodles & Company’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TH International | -53.46% | N/A | -20.48% |
| Noodles & Company | -2.58% | -26.88% | -2.17% |
Insider and Institutional Ownership
91.9% of TH International shares are held by institutional investors. Comparatively, 65.7% of Noodles & Company shares are held by institutional investors. 2.9% of Noodles & Company shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
TH International has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, Noodles & Company has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.
Summary
Noodles & Company beats TH International on 9 of the 12 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 Noodles & Company
Noodles & Company, a restaurant concept company, develops and operates fast-casual restaurants. It offers cooked-to-order dishes, including noodles and pasta, soups, salads, and appetizers. It operates company owned locations and franchise locations. The company was founded in 1995 and is based in Broomfield, Colorado.
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