Churchill Downs (NASDAQ:CHDN) vs. TH International (NASDAQ:THCH) Financial Review

Churchill Downs (NASDAQ:CHDN – Get Free Report) and TH International (NASDAQ:THCH – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Churchill Downs and TH International”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Churchill Downs $2.93 billion 1.93 $383.00 million $5.83 13.90
TH International $1.20 billion 0.03 -$62.13 million ($2.24) -0.51

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

Analyst Ratings

This is a summary of current recommendations for Churchill Downs and TH International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Churchill Downs 0 1 10 0 2.91
TH International 1 0 0 0 1.00

Churchill Downs presently has a consensus price target of $133.90, indicating a potential upside of 65.19%. Given Churchill Downs’ stronger consensus rating and higher possible upside, equities analysts plainly believe Churchill Downs is more favorable than TH International.

Risk and Volatility

Churchill Downs has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, TH International has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Churchill Downs 13.82% 42.16% 6.31%
TH International -42.55% N/A -22.27%

Insider and Institutional Ownership

82.6% of Churchill Downs shares are held by institutional investors. Comparatively, 91.8% of TH International shares are held by institutional investors. 5.9% of Churchill Downs 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

Churchill Downs beats TH International on 13 of the 14 factors compared between the two stocks.

About Churchill Downs

(Get Free Report)

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.

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.

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