RCI Hospitality (NASDAQ:RICK) & Golden Heaven Group (NASDAQ:GDHG) Head to Head Review

RCI Hospitality (NASDAQ:RICK) and Golden Heaven Group (NASDAQ:GDHG) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Profitability

This table compares RCI Hospitality and Golden Heaven Group’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%
Golden Heaven Group	N/A	N/A	N/A

Institutional & Insider Ownership

53.8% of RCI Hospitality shares are held by institutional investors. Comparatively, 0.6% of Golden Heaven Group shares are held by institutional investors. 9.6% of RCI Hospitality shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

RCI Hospitality has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Golden Heaven Group has a beta of -11.87, meaning that its stock price is 1,287% less volatile than the S&P 500.

Valuation & Earnings

This table compares RCI Hospitality and Golden Heaven Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RCI Hospitality	$295.60 million	0.74	$3.01 million	$1.86	13.43
Golden Heaven Group	$15.29 million	0.33	-$1.80 million	N/A	N/A

RCI Hospitality has higher revenue and earnings than Golden Heaven Group.

Analyst Ratings

This is a breakdown of current ratings and target prices for RCI Hospitality and Golden Heaven Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RCI Hospitality	1	0	1	0	2.00
Golden Heaven Group	1	0	0	0	1.00

RCI Hospitality currently has a consensus price target of $98.00, indicating a potential upside of 292.31%. Given RCI Hospitality’s stronger consensus rating and higher possible upside, equities research analysts plainly believe RCI Hospitality is more favorable than Golden Heaven Group.

Summary

RCI Hospitality beats Golden Heaven Group on 12 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 Golden Heaven Group

Golden Heaven Group Holdings Ltd., together with its subsidiaries, engages in the management and operation of urban amusement parks, water parks, and complementary recreational facilities in China. Its parks offer a range of recreational experiences, including thrilling and family-friendly rides, water attractions, gourmet festivals, circus performances, and high-tech facilities. The company operates six amusement parks, water parks, and complementary recreational facilities. Golden Heaven Group Holdings Ltd. was incorporated in 2020 and is headquartered in Nanping, the People's Republic of China.