Head to Head Contrast: RCI Hospitality (NASDAQ:RICK) & Royal Olympic Cruise Lines (OTCMKTS:ROCLF)

Royal Olympic Cruise Lines (OTCMKTS:ROCLF) and RCI Hospitality (NASDAQ:RICK) are both 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, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Royal Olympic Cruise Lines and RCI Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Olympic Cruise Lines	N/A	N/A	N/A
RCI Hospitality	5.88%	6.19%	2.81%

Earnings and Valuation

This table compares Royal Olympic Cruise Lines and RCI Hospitality”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Olympic Cruise Lines	N/A	N/A	N/A	N/A	N/A
RCI Hospitality	$295.60 million	0.67	$3.01 million	$1.86	12.23

RCI Hospitality has higher revenue and earnings than Royal Olympic Cruise Lines.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Royal Olympic Cruise Lines and RCI Hospitality, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Olympic Cruise Lines	0	0	0	0	0.00
RCI Hospitality	1	0	1	0	2.00

RCI Hospitality has a consensus target price of $98.00, indicating a potential upside of 330.96%. Given RCI Hospitality’s stronger consensus rating and higher probable upside, analysts plainly believe RCI Hospitality is more favorable than Royal Olympic Cruise Lines.

Institutional & Insider Ownership

53.8% of RCI Hospitality shares are owned by institutional investors. 64.1% of Royal Olympic Cruise Lines 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 stock is poised for long-term growth.

Summary

RCI Hospitality beats Royal Olympic Cruise Lines on 8 of the 9 factors compared between the two stocks.

About Royal Olympic Cruise Lines

Royal Olympic Cruise Lines, Inc. engages in the ownership, operation, and management of a fleet of cruise ships. The company also provides services under management agreements for other cruise vessels, for which a management fee is charged. Its fleet, in 2002, consisted of seven overnight cruise ships, ranging in capacity from approximately 450 to 836 passengers. The geographical areas served by the company include the eastern and western Mediterranean, South and Central America, the Caribbean, South Africa, and the Far East. Its competitors include Costa Crociere SpA, Mediterranean Shipping Cruises Limited, P&O Cruises Limited, and Holland America. The company was founded in 1938 and is based in Piraeus, Greece.

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.