Head-To-Head Survey: Reading International (NASDAQ:RDI) and Flight Centre (OTCMKTS:FGETF)

Reading International (NASDAQ:RDI) and Flight Centre (OTCMKTS:FGETF) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Earnings & Valuation

This table compares Reading International and Flight Centre”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reading International	$210.53 million	0.14	-$35.30 million	($0.61)	-2.10
Flight Centre	$1.80 billion	0.99	$70.90 million	N/A	N/A

Flight Centre has higher revenue and earnings than Reading International.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Reading International and Flight Centre, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reading International	1	0	0	0	1.00
Flight Centre	0	0	1	1	3.50

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reading International	-6.52%	N/A	-3.09%
Flight Centre	N/A	N/A	N/A

Insider and Institutional Ownership

44.7% of Reading International shares are owned by institutional investors. 32.4% of Reading International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Reading International has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Flight Centre has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500.

Summary

Flight Centre beats Reading International on 8 of the 11 factors compared between the two stocks.

About Reading International

Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.

About Flight Centre

Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets. It also provides tour operations, hotel management, and destination management services. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, and cievents. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. The company was incorporated in 1987 and is headquartered in South Brisbane, Australia.