Financial Review: H.I.S. (OTCMKTS:HISJF) & Reading International (NASDAQ:RDI)

H.I.S. (OTCMKTS:HISJF) and Reading International (NASDAQ:RDI) 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 analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Volatility & Risk

H.I.S. has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500. Comparatively, Reading International has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
H.I.S.	1.17%	13.38%	2.20%
Reading International	-8.43%	N/A	-4.03%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for H.I.S. and Reading International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H.I.S.	0	0	0	0	0.00
Reading International	1	0	0	0	1.00

Earnings and Valuation

This table compares H.I.S. 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
H.I.S.	$2.50 billion	0.39	$31.62 million	$0.40	32.73
Reading International	$202.99 million	0.13	-$14.14 million	($0.77)	-1.53

H.I.S. has higher revenue and earnings than Reading International. Reading International is trading at a lower price-to-earnings ratio than H.I.S., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

44.7% of Reading International shares are held by institutional investors. 32.4% of Reading International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

H.I.S. beats Reading International on 8 of the 12 factors compared between the two stocks.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.

About Reading International

Reading International, Inc., together with its subsidiaries, focuses on 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, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.