TIX (TIXC) vs. Reading International (RDI) Critical Analysis

Reading International (NASDAQ:RDI) and TIX (OTCMKTS:TIXC) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Risk and Volatility

Reading International has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, TIX has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Reading International and TIX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reading International 0 0 2 0 3.00
TIX 0 0 0 0 N/A

Reading International currently has a consensus price target of $23.50, indicating a potential upside of 63.76%. Given Reading International’s higher possible upside, equities analysts clearly believe Reading International is more favorable than TIX.

Insider & Institutional Ownership

38.4% of Reading International shares are owned by institutional investors. 27.0% of Reading International shares are owned by company insiders. Comparatively, 37.5% of TIX 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 and Valuation

This table compares Reading International and TIX’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Reading International $279.73 million 1.18 $30.99 million $1.30 11.04
TIX $17.40 million 0.29 -$4.68 million N/A N/A

Reading International has higher revenue and earnings than TIX.

Profitability

This table compares Reading International and TIX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reading International 5.70% 6.76% 2.86%
TIX -42.25% -6.25% -5.64%

Summary

Reading International beats TIX on 10 of the 11 factors compared between the two stocks.

About Reading International

Reading International, Inc. engages in the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Theatrical Motion Picture Exhibition (Cinema Exhibition) and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Angelika Film Centers, Consolidated Theatres, City Cinemas, and Rialto brands. The Real Estate segment owns, develops, rents, or licenses retail, commercial, and live theater assets. As of December 31, 2017, the company had interests in 58 cinemas comprising approximately 473 screens; fee interests in 3 live theaters; fee interest in 1 cinema in New York City; fee interests in 2 cinemas in Australia and 4 cinemas in New Zealand; fee interest in Union Square property; entertainment-themed centers; interest in 70.4 acres of vacant land; interest in 202 acres of vacant land; fee interest in 2 office buildings; and fee ownership of approximately 20.7 million square feet of developed and undeveloped real estate assets. Reading International, Inc. was founded in 1937 and is headquartered in Culver City, California.

About TIX

Tix Corporation, through its subsidiary, Tix4Tonight, LLC, operates as an entertainment company in the United States. The company provides discount ticketing and discount dinner reservations services. It offers discount tickets under short-term, exclusive, and nonexclusive agreements in Las Vegas at a discount of up to 50 percent for same-day shows, concerts, attractions, and sporting events. The company also provides reservations for discounted dinners at various restaurants surrounding the Las Vegas strip and downtown. As of February 21, 2017, it operated 10 discount ticket stores in Las Vegas under its Tix4Tonight marquee. The company was formerly known as Cinema Ride, Inc. and changed its name to Tix Corporation in March 2005. Tix Corporation was founded in 1993 and is headquartered in Studio City, California.

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