Critical Survey: Flight Centre (OTCMKTS:FGETF) & Reading International (NASDAQ:RDI)

Flight Centre (OTCMKTS:FGETF) and Reading International (NASDAQ:RDI) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares Flight Centre and Reading International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flight Centre	$1.80 billion	0.99	$70.90 million	N/A	N/A
Reading International	$211.29 million	0.14	-$35.30 million	($0.61)	-2.11

Flight Centre has higher revenue and earnings than Reading International.

Volatility & Risk

Flight Centre has a beta of -0.16, indicating that its share price is 116% less volatile than the S&P 500. Comparatively, Reading International has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Flight Centre and Reading International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flight Centre	0	0	1	1	3.50
Reading International	1	0	0	0	1.00

Profitability

This table compares Flight Centre and Reading International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flight Centre	N/A	N/A	N/A
Reading International	-7.54%	N/A	-3.58%

Insider and Institutional Ownership

44.7% of Reading International shares are held by institutional investors. 32.4% of Reading International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Flight Centre beats Reading International on 8 of the 11 factors compared between the two stocks.

About Flight Centre

Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets. It also provides tour operations, hotel management, and destination management services. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, and cievents. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. The company was incorporated in 1987 and is headquartered in South Brisbane, Australia.

About Reading International

Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.