RCI Hospitality (NASDAQ:RICK – Get Free Report) and Studio City Ih (NYSE:MSC – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Profitability
This table compares RCI Hospitality and Studio City Ih’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
RCI Hospitality | 5.88% | 6.19% | 2.81% |
Studio City Ih | -10.13% | -10.36% | -2.21% |
Analyst Recommendations
This is a summary of current ratings for RCI Hospitality and Studio City Ih, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
RCI Hospitality | 0 | 0 | 1 | 0 | 3.00 |
Studio City Ih | 0 | 0 | 0 | 0 | 0.00 |
Insider and Institutional Ownership
53.8% of RCI Hospitality shares are held by institutional investors. 9.6% of RCI Hospitality shares are held by company insiders. Comparatively, 54.9% of Studio City Ih shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
RCI Hospitality has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Studio City Ih has a beta of -0.14, suggesting that its stock price is 114% less volatile than the S&P 500.
Valuation & Earnings
This table compares RCI Hospitality and Studio City Ih”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 | $295.60 million | 0.91 | $3.01 million | $1.86 | 16.63 |
Studio City Ih | $639.15 million | 1.34 | -$105.83 million | ($0.35) | -11.59 |
RCI Hospitality has higher earnings, but lower revenue than Studio City Ih. Studio City Ih is trading at a lower price-to-earnings ratio than RCI Hospitality, indicating that it is currently the more affordable of the two stocks.
Summary
RCI Hospitality beats Studio City Ih on 11 of the 14 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 Studio City Ih
Studio City International Holdings Limited operates an entertainment resort in Macau. It operates Studio City Casino, comprising gaming tables, including tables for VIP rolling chip operations and gaming machines; and resort, which offers various non-gaming attractions, including figure-8 ferris wheel, night club and karaoke venue, live performance arena, and an outdoor and indoor water park, as well as hotel rooms and various food and beverage establishments, and retail space. The company was formerly known as Cyber One Agents Limited and changed its name to Studio City International Holdings Limited in January 2012. The company was founded in 2000 and is based in Central, Hong Kong. Studio City International Holdings Limited is a subsidiary of MCO Cotai Investments Limited.
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