Head to Head Review: MakeMyTrip Limited (MMYT) versus Reading International (RDI)

MakeMyTrip Limited (NASDAQ: MMYT) and Reading International (NASDAQ:RDI) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for MakeMyTrip Limited and Reading International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MakeMyTrip Limited 1 1 1 0 2.00
Reading International 0 0 1 0 3.00

MakeMyTrip Limited currently has a consensus price target of $29.95, suggesting a potential upside of 0.17%. Reading International has a consensus price target of $26.50, suggesting a potential upside of 69.98%. Given Reading International’s stronger consensus rating and higher probable upside, analysts plainly believe Reading International is more favorable than MakeMyTrip Limited.

Risk & Volatility

MakeMyTrip Limited has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Reading International has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares MakeMyTrip Limited and Reading International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MakeMyTrip Limited -31.64% -16.91% -13.88%
Reading International 9.36% 9.86% 3.84%

Insider and Institutional Ownership

41.0% of MakeMyTrip Limited shares are held by institutional investors. Comparatively, 31.6% of Reading International shares are held by institutional investors. 26.8% of Reading International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares MakeMyTrip Limited and Reading International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MakeMyTrip Limited $447.62 million 6.75 -$96.28 million ($2.27) -13.17
Reading International $280.63 million 1.29 $54.44 million $1.12 13.92

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

Summary

Reading International beats MakeMyTrip Limited on 9 of the 12 factors compared between the two stocks.

MakeMyTrip Limited Company Profile

MakeMyTrip Limited is an online travel company in India. The Company’s services and products include air ticketing, hotels, packages, rail tickets, bus tickets, car hire and ancillary travel requirements, such as facilitating access to third-party travel insurance and visa processing. Its segments include Air ticketing, which provides the facility to book international and domestic air tickets through an Internet-based platform; Hotels and packages, which provides holiday packages and hotel reservations through an Internet-based platform, call-centers and branch offices, and Others, which include advertisement income from hosting advertisements on its Internet Web-sites, income from sale of rail and bus tickets and income from facilitating Website access to a travel insurance company. Through the Company’s Website, www.makemytrip.com, and mobile platforms, travelers can research, plan and book a range of travel services and products in India, as well as overseas.

Reading International Company Profile

Reading International, Inc. (RDI) is engaged in the development, ownership and operation of multiplex cinemas in the United States, Australia, and New Zealand, and the development, ownership and operation of retail and commercial real estate in the United States, Australia and New Zealand. RDI operates through two segments: cinema exhibition and real estate. The cinema exhibition segment operates multiplex cinemas. RDI’s real estate segment includes real estate development and the rental of retail, commercial and live theater assets. The Company manages its cinema exhibition businesses around the world under various brands, including Reading Cinema, Angelika Film Centers, Consolidated Theatres and City Cinemas brands in the United States; under the Reading Cinema brand in Australia, and under the Reading Cinema and Rialto brands in New Zealand.

Receive News & Ratings for MakeMyTrip Limited Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MakeMyTrip Limited and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply