Kura Sushi USA (NASDAQ:KRUS) vs. TH International (NASDAQ:THCH) Financial Review

Kura Sushi USA (NASDAQ:KRUS) and TH International (NASDAQ:THCH) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares Kura Sushi USA and TH International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kura Sushi USA	-1.41%	-0.85%	-0.42%
TH International	-42.55%	N/A	-22.27%

Risk and Volatility

Kura Sushi USA has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, TH International has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Valuation and Earnings

This table compares Kura Sushi USA and TH International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kura Sushi USA	$328.28 million	1.02	-$4.64 million	($0.38)	-72.34
TH International	$1.20 billion	0.03	-$62.13 million	($2.24)	-0.55

Kura Sushi USA has higher earnings, but lower revenue than TH International. Kura Sushi USA 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 Ratings

This is a summary of recent recommendations for Kura Sushi USA and TH International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kura Sushi USA	2	6	4	1	2.31
TH International	1	0	0	0	1.00

Kura Sushi USA presently has a consensus price target of $60.22, indicating a potential upside of 119.07%. Given Kura Sushi USA’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kura Sushi USA is more favorable than TH International.

Institutional & Insider Ownership

65.5% of Kura Sushi USA shares are owned by institutional investors. Comparatively, 91.8% of TH International shares are owned by institutional investors. 2.3% of Kura Sushi USA shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Kura Sushi USA beats TH International on 11 of the 14 factors compared between the two stocks.

About Kura Sushi USA

Kura Sushi USA, Inc. operates Japanese-style revolving sushi restaurants in the United States under the Kura Revolving Sushi Bar name. Its restaurants serve sushi and other Japanese dishes, including sashimi, ramen, tempura and desserts. The company’s restaurants combine a conveyor-belt dining format with technology-enabled ordering. Guests can select dishes from a rotating belt or order through a touch-screen system, with orders delivered directly to their tables. Kura Sushi USA began operating in 2008 and opened its first restaurant in Irvine, California.

About TH International

TH International Limited is the master franchisee and exclusive operator of Tim Hortons coffee shops in China. The company develops and operates the Tim Hortons China business, serving coffee, tea, baked goods, breakfast items, sandwiches and other food products through its restaurants and digital ordering channels. Tim Hortons China opened its first location in Shanghai in 2019. Since then, the business has focused on expanding the Tim Hortons brand across mainland China, adapting its menu and store formats to local consumer preferences while maintaining the brand’s core coffee and food offerings.