iQIYI (NASDAQ:IQ – Get Free Report) and Reading International (NASDAQ:RDIB – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Profitability
This table compares iQIYI and Reading International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iQIYI | -3.24% | -6.29% | -1.78% |
| Reading International | N/A | N/A | N/A |
Analyst Ratings
This is a summary of current ratings and target prices for iQIYI and Reading International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iQIYI | 1 | 4 | 1 | 0 | 2.00 |
| Reading International | 1 | 0 | 0 | 0 | 1.00 |
Insider & Institutional Ownership
52.7% of iQIYI shares are owned by institutional investors. Comparatively, 0.4% of Reading International shares are owned by institutional investors. 57.8% of iQIYI shares are owned by company insiders. Comparatively, 5.4% of Reading International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares iQIYI and Reading International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iQIYI | $3.80 billion | 0.24 | -$29.50 million | ($0.12) | -7.92 |
| Reading International | $214.46 million | N/A | N/A | ($0.20) | -71.88 |
Reading International has lower revenue, but higher earnings than iQIYI. Reading International is trading at a lower price-to-earnings ratio than iQIYI, indicating that it is currently the more affordable of the two stocks.
Summary
iQIYI beats Reading International on 8 of the 11 factors compared between the two stocks.
About iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
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.
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