Reading International (NASDAQ: RDI) and ClubCorp Holdings (NYSE:MYCC) are both small-cap cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitabiliy, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Dividends

ClubCorp Holdings pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. Reading International does not pay a dividend. ClubCorp Holdings pays out -5,194.8% of its earnings in the form of a dividend.

Insider & Institutional Ownership

31.6% of Reading International shares are owned by institutional investors. Comparatively, 95.4% of ClubCorp Holdings shares are owned by institutional investors. 26.8% of Reading International shares are owned by company insiders. Comparatively, 2.9% of ClubCorp Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Reading International and ClubCorp Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reading International 0 0 1 0 3.00
ClubCorp Holdings 0 4 4 0 2.50

Reading International presently has a consensus target price of $26.50, suggesting a potential upside of 69.01%. ClubCorp Holdings has a consensus target price of $18.75, suggesting a potential upside of 9.97%. Given Reading International’s stronger consensus rating and higher probable upside, research analysts plainly believe Reading International is more favorable than ClubCorp Holdings.

Valuation and Earnings

This table compares Reading International and ClubCorp Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Reading International $275.14 million 1.32 $51.92 million $0.44 35.64
ClubCorp Holdings $1.10 billion 1.03 $203.96 million ($0.01) -1,703.30

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

Volatility and Risk

Reading International has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, ClubCorp Holdings has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Profitability

This table compares Reading International and ClubCorp Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reading International 4.01% 8.30% 2.74%
ClubCorp Holdings -0.04% 9.50% 0.66%

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 ClubCorp Holdings

ClubCorp Holdings, Inc., incorporated on November 10, 2010, is engaged in membership-based leisure business. The Company is also the owner-operator of private golf and country clubs, and business, sports and alumni clubs in North America. The Company operates through two segments: golf and country clubs, and business, sports and alumni clubs. The golf and country club segment includes private country clubs, golf clubs and public golf facilities. The business, sports and alumni club segment includes business clubs, business/sports clubs, sports clubs and alumni clubs. As of April 12, 2017 it owned or operated a portfolio of over 200 golf and country clubs, business clubs, sports clubs, and alumni clubs in 27 states, the District of Columbia and two foreign countries that serve over 430,000 members. The Company’s facilities are located in areas, such as Los Angeles, San Francisco, Atlanta, Columbus, Houston, Las Vegas and Richmond.

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