Churchill Downs (NASDAQ:CHDN – Get Free Report) and TH International (NASDAQ:THCH – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Insider & 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 stock is poised for long-term growth.
Valuation & Earnings
This table compares Churchill Downs and TH International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Churchill Downs | $2.93 billion | 1.95 | $383.00 million | $5.83 | 14.06 |
| TH International | $188.21 million | 0.18 | -$62.13 million | ($2.24) | -0.46 |
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.
Volatility & Risk
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.
Analyst Recommendations
This is a summary of current recommendations and price targets for Churchill Downs and TH International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Churchill Downs | 0 | 1 | 9 | 0 | 2.90 |
| TH International | 1 | 0 | 0 | 0 | 1.00 |
Churchill Downs currently has a consensus price target of $134.89, indicating a potential upside of 64.56%. Given Churchill Downs’ stronger consensus rating and higher possible upside, research analysts plainly believe Churchill Downs is more favorable than TH International.
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% |
Summary
Churchill Downs beats TH International on 12 of the 13 factors compared between the two stocks.
About Churchill Downs
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
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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