Reading International (NASDAQ: RDI) and MakeMyTrip Limited (NASDAQ:MMYT) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Volatility and Risk

Reading International has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, MakeMyTrip Limited has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Reading International 9.36% 9.86% 3.84%
MakeMyTrip Limited -31.64% -16.91% -13.88%

Earnings and Valuation

This table compares Reading International and MakeMyTrip Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Reading International $280.63 million 1.28 $54.47 million $1.12 13.93
MakeMyTrip Limited $518.45 million 3.09 -$131.21 million ($2.27) -13.39

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

Insider and Institutional Ownership

31.7% of Reading International shares are owned by institutional investors. Comparatively, 42.6% of MakeMyTrip Limited shares are owned by institutional investors. 26.8% of Reading International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Reading International and MakeMyTrip Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reading International 0 0 1 0 3.00
MakeMyTrip Limited 1 1 1 0 2.00

Reading International presently has a consensus price target of $26.50, suggesting a potential upside of 69.87%. MakeMyTrip Limited has a consensus price target of $29.95, suggesting a potential downside of 1.48%. Given Reading International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Reading International is more favorable than MakeMyTrip Limited.

Summary

Reading International beats MakeMyTrip Limited on 9 of the 12 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 MakeMyTrip Limited

MakeMyTrip Limited is an online travel company in India. The Company’s services and products include air ticketing, hotels, packages, rail tickets, bus tickets, car hire and ancillary travel requirements, such as facilitating access to third-party travel insurance and visa processing. Its segments include Air ticketing, which provides the facility to book international and domestic air tickets through an Internet-based platform; Hotels and packages, which provides holiday packages and hotel reservations through an Internet-based platform, call-centers and branch offices, and Others, which include advertisement income from hosting advertisements on its Internet Web-sites, income from sale of rail and bus tickets and income from facilitating Website access to a travel insurance company. Through the Company’s Website, www.makemytrip.com, and mobile platforms, travelers can research, plan and book a range of travel services and products in India, as well as overseas.

Receive News & Stock Ratings for Reading International Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Reading International Inc and related stocks with our FREE daily email newsletter.