Critical Analysis: Reading International (RDIB) versus The Competition

Reading International (NASDAQ:RDIB) is one of 188 publicly-traded companies in the “Entertainment” industry, but how does it contrast to its rivals? We will compare Reading International to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, risk, earnings and dividends.

Institutional and Insider Ownership

0.4% of Reading International shares are owned by institutional investors. Comparatively, 35.6% of shares of all “Entertainment” companies are owned by institutional investors. 5.4% of Reading International shares are owned by insiders. Comparatively, 24.2% of shares of all “Entertainment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Reading International and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Reading International	$207.94 million	N/A	-44.69
Reading International Competitors	$4.51 billion	$74.17 million	-6.15

Reading International’s rivals have higher revenue and earnings than Reading International. Reading International is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and target prices for Reading International and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reading International	1	0	0	0	1.00
Reading International Competitors	1775	4369	9408	241	2.51

As a group, “Entertainment” companies have a potential upside of 22.74%. Given Reading International’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Reading International has less favorable growth aspects than its rivals.

Profitability

This table compares Reading International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reading International	N/A	N/A	N/A
Reading International Competitors	8.57%	-60.11%	-3.13%

Summary

Reading International rivals beat Reading International on 9 of the 11 factors compared.

About Reading International

Reading International, Inc. is an entertainment and real estate company, which engages in the development, ownership, and operation of multiplex cinemas and retail and commercial real estate in the United States, Australia, and New Zealand. It operates through the Cinema Exhibition and Real Estate segments. The Cinema Exhibition segment includes Reading Cinemas, Angelika Film Center, Consolidated Theatres, City Cinemas, 44 Union Square, and Liberty Theatres brands. The Real Estate segment comprises real estate development and the rental or licensing of retail, commercial and live theater assets. The company was founded by James J. Cotter Sr. in 1999 and is headquartered in Culver City, CA.