Reviewing GigaMedia (NASDAQ:GIGM) & Reading International (NASDAQ:RDIB)

Reading International (NASDAQ:RDIB) and GigaMedia (NASDAQ:GIGM) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Reading International and GigaMedia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reading International	1	0	0	0	1.00
GigaMedia	1	0	0	0	1.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reading International	N/A	N/A	N/A
GigaMedia	-43.36%	-5.36%	-5.02%

Insider and Institutional Ownership

0.4% of Reading International shares are owned by institutional investors. Comparatively, 13.5% of GigaMedia shares are owned by institutional investors. 5.4% of Reading International shares are owned by company insiders. Comparatively, 1.0% of GigaMedia shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reading International	$214.46 million	N/A	N/A	($0.20)	-75.64
GigaMedia	$3.47 million	4.59	-$1.55 million	($0.18)	-8.00

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

Summary

Reading International beats GigaMedia on 5 of the 8 factors compared between the two stocks.

About Reading International

Reading International, Inc. is an entertainment and real estate company, which engages in the development, ownership, and operation of multiplex cinemas and retail and commercial real estate in the United States, Australia, and New Zealand. It operates through the Cinema Exhibition and Real Estate segments. The Cinema Exhibition segment includes Reading Cinemas, Angelika Film Center, Consolidated Theatres, City Cinemas, 44 Union Square, and Liberty Theatres brands. The Real Estate segment comprises real estate development and the rental or licensing of retail, commercial and live theater assets. The company was founded by James J. Cotter Sr. in 1999 and is headquartered in Culver City, CA.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.