Contrasting Dutch Bros (NYSE:BROS) & TH International (NASDAQ:THCH)

Dutch Bros (NYSE:BROS) and TH International (NASDAQ:THCH) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Institutional and Insider Ownership

85.5% of Dutch Bros shares are owned by institutional investors. Comparatively, 91.9% of TH International shares are owned by institutional investors. 42.4% of Dutch Bros shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Dutch Bros 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
Dutch Bros	$1.64 billion	5.37	$79.84 million	$0.64	83.52
TH International	$190.59 million	N/A	-$57.32 million	($1.43)	-1.22

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

Risk and Volatility

Dutch Bros has a beta of 2.54, indicating that its stock price is 154% more volatile than the S&P 500. Comparatively, TH International has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Dutch Bros and TH International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	4	17	1	2.86
TH International	1	0	0	0	1.00

Dutch Bros presently has a consensus target price of $77.05, indicating a potential upside of 44.15%. Given Dutch Bros’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Dutch Bros is more favorable than TH International.

Profitability

This table compares Dutch Bros and TH International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	4.87%	9.75%	2.86%
TH International	-25.22%	N/A	-17.98%

Summary

Dutch Bros beats TH International on 13 of the 14 factors compared between the two stocks.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

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.