RCI Hospitality (NASDAQ:RICK – Get Free Report) and OneSpaWorld (NASDAQ:OSW – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Valuation and Earnings
This table compares RCI Hospitality and OneSpaWorld”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RCI Hospitality | $279.43 million | 0.70 | $10.81 million | $1.20 | 21.13 |
| OneSpaWorld | $961.00 million | 2.66 | $71.62 million | $0.75 | 33.61 |
Volatility & Risk
RCI Hospitality has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for RCI Hospitality and OneSpaWorld, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RCI Hospitality | 1 | 0 | 0 | 0 | 1.00 |
| OneSpaWorld | 0 | 1 | 6 | 1 | 3.00 |
OneSpaWorld has a consensus target price of $27.60, suggesting a potential upside of 9.48%. Given OneSpaWorld’s stronger consensus rating and higher possible upside, analysts clearly believe OneSpaWorld is more favorable than RCI Hospitality.
Insider and Institutional Ownership
53.8% of RCI Hospitality shares are owned by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are owned by institutional investors. 9.6% of RCI Hospitality shares are owned by company insiders. Comparatively, 3.9% of OneSpaWorld shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares RCI Hospitality and OneSpaWorld’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RCI Hospitality | 3.87% | 4.05% | 1.82% |
| OneSpaWorld | 7.85% | 18.11% | 13.71% |
Dividends
RCI Hospitality pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. OneSpaWorld pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. RCI Hospitality pays out 26.7% of its earnings in the form of a dividend. OneSpaWorld pays out 26.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RCI Hospitality has raised its dividend for 4 consecutive years. RCI Hospitality is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
OneSpaWorld beats RCI Hospitality on 13 of the 17 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 OneSpaWorld
OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.
Receive News & Ratings for RCI Hospitality Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RCI Hospitality and related companies with MarketBeat.com's FREE daily email newsletter.
