Comparing RCI Hospitality (NASDAQ:RICK) and Lindblad Expeditions (NASDAQ:LIND)

Lindblad Expeditions (NASDAQ:LIND) and RCI Hospitality (NASDAQ:RICK) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Earnings & Valuation

This table compares Lindblad Expeditions and RCI Hospitality”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lindblad Expeditions	$799.31 million	1.69	-$29.72 million	($0.54)	-38.09
RCI Hospitality	$279.43 million	0.67	$10.81 million	($0.38)	-63.95

RCI Hospitality has lower revenue, but higher earnings than Lindblad Expeditions. RCI Hospitality is trading at a lower price-to-earnings ratio than Lindblad Expeditions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Lindblad Expeditions and RCI Hospitality, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lindblad Expeditions	1	1	4	0	2.50
RCI Hospitality	1	0	0	0	1.00

Lindblad Expeditions presently has a consensus target price of $24.33, indicating a potential upside of 18.30%. Given Lindblad Expeditions’ stronger consensus rating and higher possible upside, analysts plainly believe Lindblad Expeditions is more favorable than RCI Hospitality.

Profitability

This table compares Lindblad Expeditions and RCI Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lindblad Expeditions	-2.86%	N/A	-0.44%
RCI Hospitality	-3.85%	-4.24%	-1.82%

Volatility & Risk

Lindblad Expeditions has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, RCI Hospitality has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Insider & Institutional Ownership

75.9% of Lindblad Expeditions shares are held by institutional investors. Comparatively, 53.8% of RCI Hospitality shares are held by institutional investors. 26.1% of Lindblad Expeditions shares are held by insiders. Comparatively, 9.6% of RCI Hospitality shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Lindblad Expeditions beats RCI Hospitality on 12 of the 14 factors compared between the two stocks.

About Lindblad Expeditions

Lindblad Expeditions Holdings, Inc. provides marine expedition adventures and travel experience worldwide. It operates through Lindblad and Land Experiences segment. Lindblad segment provides ship-based expeditions aboard customized, nimble, and intimately-scaled vessels, which offers up-close experiences in the planet's wild and remote places, and capitals of culture; and offers expedition ship which is equipped with state-of-the-art tools for in-depth exploration with infrastructure and ports, such as Antarctica and the Arctic, and places that accessed by a ship comprising Galápagos Islands, Alaska, Baja California's Sea of Cortez and Panama, and foster engagement activities. The Land Experiences segment comprises natural habitats, which provides over 100 different expedition itineraries in more than 45 countries across seven continents, with eco-conscious expeditions and nature-focused, and small-group tours including polar bear tours and bear adventure; and DuVine provides intimate group cycling and adventure tours around the world with local cycling experts as guides in local cultural, cuisine, and accommodations. This segment also offers off the beaten path including small group travel, led by local, and experienced guides with focus on wildlife, hiking national parks, and culture; and classical journey, a curated active small-group and private custom journeys centered around cinematic walks led by expert local guides over 50 countries across the world. In addition, it has an alliance with National Geographic Partners, LLC, which provides lecturers and National Geographic experts including photographers, marine biologists, writers, naturalists, field researchers, and film crews; and partnered with World Wildlife Fund to offer conservation travel. Lindblad Expeditions Holdings, Inc. was founded in 1979 and is headquartered in New York, New York.

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.