Reading International (NASDAQ: RDI) and Virgin Media (NASDAQ:VMED) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitabiliy, institutional ownership, analyst recommendations, risk, earnings and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Reading International 3.71% 7.69% 2.91%
Virgin Media N/A N/A N/A

Earnings & Valuation

This table compares Reading International and Virgin Media’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Reading International $275.14 million 1.39 $51.92 million $0.44 37.55
Virgin Media N/A N/A N/A N/A N/A

Reading International has higher revenue and earnings than Virgin Media.

Institutional and Insider Ownership

31.6% of Reading International shares are held by institutional investors. 26.8% of Reading International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Reading International and Virgin Media, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reading International 0 0 1 0 3.00
Virgin Media 0 0 0 0 N/A

Reading International currently has a consensus price target of $26.50, indicating a potential upside of 60.41%. Given Reading International’s higher probable upside, research analysts clearly believe Reading International is more favorable than Virgin Media.

Summary

Reading International beats Virgin Media on 8 of the 8 factors compared between the two stocks.

About Reading International

Reading International, Inc. (RDI) is engaged in the development, ownership and operation of multiplex cinemas in the United States, Australia, and New Zealand, and the development, ownership and operation of retail and commercial real estate in the United States, Australia and New Zealand. RDI operates through two segments: cinema exhibition and real estate. The cinema exhibition segment operates multiplex cinemas. RDI’s real estate segment includes real estate development and the rental of retail, commercial and live theater assets. The Company manages its cinema exhibition businesses around the world under various brands, including Reading Cinema, Angelika Film Centers, Consolidated Theatres and City Cinemas brands in the United States; under the Reading Cinema brand in Australia, and under the Reading Cinema and Rialto brands in New Zealand.

About Virgin Media

Virgin Media Inc. (Virgin Media)is engaged in entertainment and communications business. The Company has two segments: Consumer and Business. The Company is a provider of broadband Internet, television, mobile telephony and fixed line telephony services that offer a range of entertainment and communications services to residential and commercial customers throughout the United Kingdom. It is a provider of residential broadband Internet, pay television and fixed line telephony services by number of customers. As of December 31, 2011, the Company provided services to approximately 4.8 million residential cable customers on its network. The Company is also a mobile virtual network operators by number of customers, providing mobile telephone service to 1.5 million prepay mobile customers and approximately 1.5 million contract mobile customers over third party networks. In June 2013, Liberty Global Inc announced that it has completed the acquisition of Virgin Media Inc (Virgin Media).

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