Analyzing RCI Hospitality (RICK) & The Competition

RCI Hospitality (NASDAQ: RICK) is one of 56 public companies in the “Eating places” industry, but how does it compare to its rivals? We will compare RCI Hospitality to similar businesses based on the strength of its analyst recommendations, earnings, valuation, institutional ownership, profitability, risk and dividends.

Institutional and Insider Ownership

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49.7% of RCI Hospitality shares are owned by institutional investors. Comparatively, 67.4% of shares of all “Eating places” companies are owned by institutional investors. 7.6% of RCI Hospitality shares are owned by insiders. Comparatively, 17.3% of shares of all “Eating places” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares RCI Hospitality and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
RCI Hospitality $144.90 million $8.25 million 19.31
RCI Hospitality Competitors $1.91 billion $185.15 million 20.56

RCI Hospitality’s rivals have higher revenue and earnings than RCI Hospitality. RCI Hospitality is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares RCI Hospitality and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RCI Hospitality 12.91% 12.26% 5.77%
RCI Hospitality Competitors 3.40% -3.66% 5.13%

Dividends

RCI Hospitality pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. RCI Hospitality pays out 8.4% of its earnings in the form of a dividend. As a group, “Eating places” companies pay a dividend yield of 2.2% and pay out 50.5% of their earnings in the form of a dividend.

Risk and Volatility

RCI Hospitality has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, RCI Hospitality’s rivals have a beta of 0.55, meaning that their average share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for RCI Hospitality and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RCI Hospitality 0 0 1 0 3.00
RCI Hospitality Competitors 519 2653 2979 123 2.43

RCI Hospitality presently has a consensus price target of $34.00, indicating a potential upside of 23.14%. As a group, “Eating places” companies have a potential upside of 7.32%. Given RCI Hospitality’s stronger consensus rating and higher possible upside, research analysts clearly believe RCI Hospitality is more favorable than its rivals.

Summary

RCI Hospitality rivals beat RCI Hospitality on 8 of the 15 factors compared.

RCI Hospitality Company Profile

RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. It operates in two segments, Nightclubs and Bombshells. The company owns 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, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Temptations Adult Cabaret, Scarlett's Cabaret, Silver City Cabaret, Cabaret East, and The Seville brands. It also operates restaurants/sports bars under the Bombshells brand; and dance clubs under the Studio 80 brand. As of November 30, 2017, the company operated 45 units that offers live adult entertainment, and/or restaurant and bar operations. In addition, it owns a national industry convention and tradeshow; two national industry trade publications; and two national industry award shows, as well as approximately a dozen industry and social media Websites. The company was formerly known as Rick's Cabaret International, Inc. and changed its name to RCI Hospitality Holdings, Inc. in August 2014. RCI Hospitality Holdings, Inc. was founded in 1982 and is based in Houston, Texas.

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