Head to Head Comparison: RCI Hospitality (NASDAQ:RICK) & Airbnb (NASDAQ:ABNB)

Airbnb (NASDAQ:ABNB) and RCI Hospitality (NASDAQ:RICK) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airbnb	22.67%	32.19%	11.03%
RCI Hospitality	5.88%	6.19%	2.81%

Institutional and Insider Ownership

80.8% of Airbnb shares are owned by institutional investors. Comparatively, 53.8% of RCI Hospitality shares are owned by institutional investors. 27.8% of Airbnb shares are owned by company insiders. Comparatively, 9.6% of RCI Hospitality 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.

Volatility & Risk

Airbnb has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, RCI Hospitality has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Airbnb and RCI Hospitality, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	5	19	12	2	2.29
RCI Hospitality	0	0	1	0	3.00

Airbnb currently has a consensus price target of $141.68, suggesting a potential upside of 15.61%. RCI Hospitality has a consensus price target of $98.00, suggesting a potential upside of 180.72%. Given RCI Hospitality’s stronger consensus rating and higher possible upside, analysts clearly believe RCI Hospitality is more favorable than Airbnb.

Earnings and Valuation

This table compares Airbnb and RCI Hospitality”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$11.10 billion	6.86	$2.65 billion	$4.13	29.67
RCI Hospitality	$295.60 million	1.03	$3.01 million	$1.86	18.77

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

Summary

Airbnb beats RCI Hospitality on 12 of the 15 factors compared between the two stocks.

About Airbnb

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.

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.