El Pollo Loco (NASDAQ:LOCO – Get Free Report) and TH International (NASDAQ:THCH – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.
Institutional and Insider Ownership
81.3% of El Pollo Loco shares are owned by institutional investors. Comparatively, 91.9% of TH International 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares El Pollo Loco and TH International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| El Pollo Loco | 5.11% | 10.34% | 4.40% |
| TH International | -40.57% | N/A | -16.23% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| El Pollo Loco | 0 | 2 | 0 | 0 | 2.00 |
| TH International | 0 | 0 | 0 | 0 | 0.00 |
El Pollo Loco currently has a consensus price target of $13.00, indicating a potential upside of 4.25%. Given El Pollo Loco’s stronger consensus rating and higher probable upside, analysts plainly believe El Pollo Loco is more favorable than TH International.
Valuation & Earnings
This table compares El Pollo Loco and TH International”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| El Pollo Loco | $468.66 million | 0.80 | $25.55 million | $0.79 | 15.79 |
| TH International | $221.94 million | 0.45 | -$123.81 million | ($2.55) | -1.17 |
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.
Risk & Volatility
El Pollo Loco has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, TH International has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Summary
El Pollo Loco beats TH International on 12 of the 13 factors compared between the two stocks.
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.
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.
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