Analyzing Reading International (RDIB) and Its Peers

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reading International	1	0	0	0	1.00
Reading International Competitors	1747	4338	9344	237	2.52

As a group, “Entertainment” companies have a potential upside of 25.35%. Given Reading International’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Reading International has less favorable growth aspects than its competitors.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reading International	$207.94 million	N/A	-41.55
Reading International Competitors	$10.54 billion	$68.78 million	-8.56

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

Profitability

This table compares Reading International and its competitors’ 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	10.16%	-3.61%	-3.23%

Institutional and Insider Ownership

0.4% of Reading International shares are owned by institutional investors. Comparatively, 35.1% of shares of all “Entertainment” companies are owned by institutional investors. 5.4% of Reading International shares are owned by insiders. Comparatively, 25.0% of shares of all “Entertainment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

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

Reading International Company Profile

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.