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 investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Earnings & Valuation
This table compares TH International and El Pollo Loco”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TH International | $221.94 million | 0.47 | -$123.81 million | ($2.55) | -1.22 |
| El Pollo Loco | $468.66 million | 0.79 | $25.55 million | $0.79 | 15.65 |
El Pollo Loco has higher revenue and 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
| 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 5.18%. Given El Pollo Loco’s stronger consensus rating and higher possible upside, analysts plainly believe El Pollo Loco is more favorable than TH International.
Risk & Volatility
TH International has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, El Pollo Loco has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.
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% |
Institutional and Insider Ownership
91.9% 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
El Pollo Loco beats TH International on 12 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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