Analyzing Papa Johns International (NASDAQ:PZZA) & TH International (NASDAQ:THCH)

TH International (NASDAQ:THCH) and Papa Johns International (NASDAQ:PZZA) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Profitability

This table compares TH International and Papa Johns International’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%
Papa Johns International	4.51%	-19.61%	10.04%

Institutional & Insider Ownership

91.8% of TH International shares are owned by institutional investors. 8.9% of Papa Johns International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares TH International and Papa Johns International”s revenue, earnings per share and valuation.

	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)	-1.15
Papa Johns International	$2.06 billion	0.65	$82.10 million	$2.52	16.30

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

Risk & Volatility

TH International has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Papa Johns International has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for TH International and Papa Johns International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	0	0	0	0	0.00
Papa Johns International	0	7	6	0	2.46

Papa Johns International has a consensus price target of $55.25, indicating a potential upside of 34.49%. Given Papa Johns International’s stronger consensus rating and higher probable upside, analysts clearly believe Papa Johns International is more favorable than TH International.

Summary

Papa Johns International beats TH International on 12 of the 14 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 Papa Johns International

Papa John’s International, Inc. engages in the operation and franchise of pizza delivery and carryout restaurants. It operates through the following segments: Domestic Company-owned Restaurants, North America Franchising, North America Commissaries, International Operations, and All Others. The Domestic Company-Owned Restaurants segment consists of retail sales of pizza and side items, breadsticks, cheese sticks, chicken poppers and wings, dessert items, and canned and bottled beverages. The North America Franchising segment involves the offering of sales and support activities, development rights, and collection of royalties from franchisees located in the United States and Canada. The North America Commissaries segment includes the eleven full-service regional dough production and distribution and quality control centers. The International Operations segment represents all restaurant operations outside of the United States and Canada. The All Others segment focuses on franchise contributions to marketing funds and sale, company-owned and franchised restaurants, information systems and related services used in restaurant operations, point-of-sale system, online and other technology-based ordering platforms, printing, and promotional items. The company was founded by John H. Schnatter in 1984 and is headquartered in Louisville, KY.