RCI Hospitality (NASDAQ:RICK – Get Free Report) and Manchester United (NYSE:MANU – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Profitability
This table compares RCI Hospitality and Manchester United’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% |
| Manchester United | -6.14% | -10.21% | -1.20% |
Volatility & Risk
RCI Hospitality has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Manchester United has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RCI Hospitality | $295.60 million | 0.68 | $3.01 million | $1.86 | 12.37 |
| Manchester United | $862.42 million | 3.61 | -$42.74 million | ($0.31) | -58.22 |
RCI Hospitality has higher earnings, but lower revenue than Manchester United. Manchester United is trading at a lower price-to-earnings ratio than RCI Hospitality, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for RCI Hospitality and Manchester United, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RCI Hospitality | 1 | 0 | 1 | 0 | 2.00 |
| Manchester United | 1 | 0 | 0 | 0 | 1.00 |
RCI Hospitality presently has a consensus price target of $98.00, suggesting a potential upside of 325.90%. Given RCI Hospitality’s stronger consensus rating and higher possible upside, equities research analysts clearly believe RCI Hospitality is more favorable than Manchester United.
Insider & Institutional Ownership
53.8% of RCI Hospitality shares are owned by institutional investors. Comparatively, 23.3% of Manchester United shares are owned by institutional investors. 9.6% of RCI Hospitality shares are owned by company insiders. Comparatively, 68.6% of Manchester United shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
RCI Hospitality beats Manchester United on 11 of the 14 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 Manchester United
Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.
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