Reading International (NASDAQ:RDI) vs. Six Flags Entertainment (NYSE:FUN) Head-To-Head Contrast

Reading International (NASDAQ:RDI) and Six Flags Entertainment (NYSE:FUN) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Reading International and Six Flags Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reading International	-8.43%	N/A	-4.03%
Six Flags Entertainment	-52.76%	5.17%	0.51%

Volatility and Risk

Reading International has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Six Flags Entertainment has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Institutional & Insider Ownership

44.7% of Reading International shares are owned by institutional investors. Comparatively, 64.7% of Six Flags Entertainment shares are owned by institutional investors. 32.4% of Reading International shares are owned by insiders. Comparatively, 2.1% of Six Flags Entertainment shares are owned 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.

Valuation & Earnings

This table compares Reading International and Six Flags Entertainment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reading International	$202.99 million	0.14	-$14.14 million	($0.77)	-1.62
Six Flags Entertainment	$3.10 billion	0.82	-$1.60 billion	($16.32)	-1.53

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

Analyst Ratings

This is a breakdown of recent ratings for Reading International and Six Flags Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reading International	1	0	0	0	1.00
Six Flags Entertainment	1	6	7	0	2.43

Six Flags Entertainment has a consensus target price of $25.15, suggesting a potential upside of 1.00%. Given Six Flags Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Six Flags Entertainment is more favorable than Reading International.

Summary

Six Flags Entertainment beats Reading International on 9 of the 14 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 Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.