Biglari (NYSE:BH.A) & TH International (NASDAQ:THCH) Financial Contrast

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

Risk and Volatility

Biglari has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, TH International has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Valuation and Earnings

This table compares Biglari 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
Biglari	$362.11 million	9.41	$333.66 million	$146.34	10.22
TH International	$1.34 billion	0.06	-$57.32 million	($1.52)	-1.65

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

Analyst Ratings

This is a summary of recent ratings and target prices for Biglari and TH International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biglari	0	0	0	0	0.00
TH International	1	0	0	0	1.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Biglari	N/A	N/A	N/A
TH International	-26.38%	N/A	-16.11%

Institutional & Insider Ownership

7.7% of Biglari shares are held by institutional investors. Comparatively, 91.8% of TH International shares are held by institutional investors. 70.9% of Biglari shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Biglari beats TH International on 8 of the 11 factors compared between the two stocks.

About Biglari

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. The company owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. As of December 31, 2019, it operated 368 Steak n Shake company-operated restaurants and 213 franchised units; and 4 Western Sizzlin company-operated restaurants and 48 franchised units. The company also engages in underwriting commercial trucking insurance, and selling physical damage and non-trucking liability insurance to truckers; and operates oil and natural gas properties offshore in the Gulf of Mexico. In addition, it publishes and sells magazines, and related publishing products under the MAXIM and Maxim brand name; and licenses media products and services, as well as is involved in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.

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.