RCI Hospitality (NASDAQ:RICK) & On the Beach Group (OTCMKTS:OOBHF) Critical Analysis

RCI Hospitality (NASDAQ:RICK) and On the Beach Group (OTCMKTS:OOBHF) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for RCI Hospitality and On the Beach Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RCI Hospitality	1	0	0	0	1.00
On the Beach Group	0	0	2	0	3.00

Profitability

This table compares RCI Hospitality and On the Beach Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RCI Hospitality	-1.48%	-1.74%	-0.72%
On the Beach Group	N/A	N/A	N/A

Valuation and Earnings

This table compares RCI Hospitality and On the Beach Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RCI Hospitality	$279.43 million	0.79	$10.81 million	($0.41)	-70.80
On the Beach Group	N/A	N/A	N/A	N/A	N/A

RCI Hospitality has higher revenue and earnings than On the Beach Group.

Insider and Institutional Ownership

53.8% of RCI Hospitality shares are held by institutional investors. 11.4% of RCI Hospitality shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

On the Beach Group beats RCI Hospitality on 5 of the 8 factors compared between the two stocks.

About RCI Hospitality

RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. It operates in Nightclubs, Bombshells, and Media Group segments. The company’s wholly-owned subsidiaries own and/or operates upscale adult nightclubs serving primarily businessmen and professionals under the Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett's Cabaret, Temptations Adult Cabaret, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, and Kappa Men's Club. Wholly-owned subsidiaries also operate restaurants and sports bars under the Bombshells Restaurant & Bar brand; and dance clubs under the Studio 80 brand. As of February 11, 2019, the company operated 46 units, including 39 nightclub units and 7 Bombshell units. In addition, it owns two national industry trade publications serving the adult nightclubs industry and the adult retail products industry; a national industry convention and tradeshow; and two national industry award shows, as well as approximately a dozen industry and social media Websites. The company founded in 1983 as Rick's Cabaret International, Inc., changed its name to RCI Hospitality Holdings, Inc. in August 2014, and is based in Houston, Texas.

About On the Beach Group

On the Beach Group plc operates as an online retailer of short haul beach holidays under the On the Beach brand name in the United Kingdom. It operates through three segments: OTB, CCH, and CPH. The company provides its services through onthebeach.co.uk, sunshine.co.uk, and onthebeachtransfers.co.uk websites in the United Kingdom. It also operates as tour operator; and online business to business portals. On the Beach Group plc was founded in 2003 and is headquartered in Manchester, the United Kingdom.