Cosi (NASDAQ: COSI) and RCI Hospitality Holdings (NASDAQ:RICK) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitabiliy, valuation and risk.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Cosi and RCI Hospitality Holdings, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cosi | 0 | 0 | 0 | 0 | N/A |
| RCI Hospitality Holdings | 0 | 0 | 2 | 0 | 3.00 |
RCI Hospitality Holdings has a consensus target price of $28.50, indicating a potential upside of 24.35%. Given RCI Hospitality Holdings’ higher possible upside, analysts clearly believe RCI Hospitality Holdings is more favorable than Cosi.
Valuation and Earnings
This table compares Cosi and RCI Hospitality Holdings’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Cosi | N/A | N/A | N/A | ($0.31) | -0.09 |
| RCI Hospitality Holdings | $135.25 million | 1.65 | $33.74 million | $1.00 | 22.92 |
RCI Hospitality Holdings has higher revenue and earnings than Cosi. Cosi is trading at a lower price-to-earnings ratio than RCI Hospitality Holdings, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
37.6% of Cosi shares are held by institutional investors. Comparatively, 39.4% of RCI Hospitality Holdings shares are held by institutional investors. 7.8% of Cosi shares are held by insiders. Comparatively, 6.9% of RCI Hospitality Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Dividends
RCI Hospitality Holdings pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. Cosi does not pay a dividend. RCI Hospitality Holdings pays out 12.0% of its earnings in the form of a dividend.
Profitability
This table compares Cosi and RCI Hospitality Holdings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cosi | -13.67% | -96.97% | -38.82% |
| RCI Hospitality Holdings | 7.16% | 9.97% | 4.77% |
Risk and Volatility
Cosi has a beta of -0.67, indicating that its stock price is 167% less volatile than the S&P 500. Comparatively, RCI Hospitality Holdings has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Summary
RCI Hospitality Holdings beats Cosi on 10 of the 12 factors compared between the two stocks.
Cosi Company Profile
Cosi, Inc. is an international fast casual restaurant company. The Company offers its flatbread. Its menu features made-to-order sandwiches, hand-tossed salads, bowls, breakfast wraps, melts, soups, signature Squagels, artisan flatbread pizzas, S’mores, snacks and desserts. It also offers handcrafted beverages and a variety of coffee-based and specialty beverages. Its sandwiches include tbm, turkey and brie, tuna, turkey avocado and chicken parmesan melt. Its cosi salads are made with fresh ingredients and its own signature dressings. Its soups include tomato basil, turkey chili, smart fit chicken noodle, and mediterranean lentil. Its handcrafted beverages include iced tea, raspberry iced tea, country club iced tea, mojito lemonade, raspberry mojito lemonade. It also offers catering services to its customers. The Company operates in 43 Company-owned and 30 franchise restaurants in fourteen states in the United States, the District of Columbia, Costa Rica and the United Arab Emirates.
RCI Hospitality Holdings Company Profile
With more than 40 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in gentlemen’s clubs and sports bars/restaurants. Clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, and other cities operate under brand names, such as “Rick’s Cabaret,” “XTC,” “Club Onyx,” “Vivid Cabaret,” “Jaguars” and “Tootsie’s Cabaret.” Sports bars/restaurants operate under the brand name “Bombshells Restaurant & Bar.” Investors are attracted by RCI’s strong cash flow, operating margins and local laws that create high barriers to entry in the gentlemen’s club business.
Receive News & Ratings for Cosi Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cosi Inc and related companies with MarketBeat.com's FREE daily email newsletter.
