Financial Analysis: Flight Centre (OTCMKTS:FGETF) versus RCI Hospitality (NASDAQ:RICK)

RCI Hospitality (NASDAQ:RICK) and Flight Centre (OTCMKTS:FGETF) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RCI Hospitality	1	0	1	0	2.00
Flight Centre	0	0	1	1	3.50

RCI Hospitality presently has a consensus price target of $98.00, indicating a potential upside of 276.63%. Given RCI Hospitality’s higher probable upside, equities analysts plainly believe RCI Hospitality is more favorable than Flight Centre.

Insider & Institutional Ownership

53.8% of RCI Hospitality shares are held by institutional investors. 9.6% of RCI Hospitality shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

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

Profitability

This table compares RCI Hospitality and Flight Centre’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%
Flight Centre	N/A	N/A	N/A

Earnings & Valuation

This table compares RCI Hospitality and Flight Centre”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RCI Hospitality	$295.60 million	0.77	$3.01 million	$1.86	13.99
Flight Centre	$1.80 billion	0.99	$70.90 million	N/A	N/A

Flight Centre has higher revenue and earnings than RCI Hospitality.

Summary

RCI Hospitality beats Flight Centre on 7 of the 12 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 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.