Financial Comparison: Noodles & Company (NASDAQ:NDLS) vs. TH International (NASDAQ:THCH)

TH International (NASDAQ:THCHGet Free Report) and Noodles & Company (NASDAQ:NDLSGet Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Volatility & Risk

TH International has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, Noodles & Company has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for TH International and Noodles & Company, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TH International 0 0 0 0 N/A
Noodles & Company 0 1 2 0 2.67

Noodles & Company has a consensus target price of $3.67, suggesting a potential upside of 104.84%. Given Noodles & Company’s higher possible upside, analysts clearly believe Noodles & Company is more favorable than TH International.

Profitability

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

Net Margins Return on Equity Return on Assets
TH International -53.46% N/A -20.48%
Noodles & Company -2.58% -26.88% -2.17%

Insider & Institutional Ownership

91.9% of TH International shares are held by institutional investors. Comparatively, 65.7% of Noodles & Company shares are held by institutional investors. 2.9% of Noodles & Company shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares TH International and Noodles & Company’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TH International $221.94 million 0.49 -$123.81 million ($0.74) -0.88
Noodles & Company $503.40 million 0.16 -$9.86 million ($0.29) -6.17

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

Summary

Noodles & Company beats TH International on 9 of the 13 factors compared between the two stocks.

About TH International

(Get Free Report)

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 Noodles & Company

(Get Free Report)

Noodles & Company, a restaurant concept company, develops and operates fast-casual restaurants. It offers cooked-to-order dishes, including noodles and pasta, soups, salads, and appetizers. It operates company owned locations and franchise locations. The company was founded in 1995 and is based in Broomfield, Colorado.

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