RCI Hospitality Holdings (RICK) vs. Dave & Buster’s Entertainment (PLAY) Critical Comparison

Dave & Buster’s Entertainment (NASDAQ: PLAY) and RCI Hospitality Holdings (NASDAQ:RICK) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Volatility and Risk

Dave & Buster’s Entertainment has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, RCI Hospitality Holdings has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

Earnings and Valuation

This table compares Dave & Buster’s Entertainment and RCI Hospitality Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dave & Buster’s Entertainment $1.05 billion 2.37 $254.99 million $2.36 25.43
RCI Hospitality Holdings $138.72 million 1.77 $34.45 million $1.13 22.33

Dave & Buster’s Entertainment has higher revenue and earnings than RCI Hospitality Holdings. RCI Hospitality Holdings is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.

Dividends

RCI Hospitality Holdings pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. Dave & Buster’s Entertainment does not pay a dividend. RCI Hospitality Holdings pays out 10.6% of its earnings in the form of a dividend.

Insider and Institutional Ownership

40.3% of RCI Hospitality Holdings shares are owned by institutional investors. 5.6% of Dave & Buster’s Entertainment shares are owned by insiders. Comparatively, 6.9% of RCI Hospitality Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Dave & Buster’s Entertainment and RCI Hospitality Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dave & Buster’s Entertainment 0 0 9 0 3.00
RCI Hospitality Holdings 0 0 2 0 3.00

Dave & Buster’s Entertainment currently has a consensus price target of $77.50, suggesting a potential upside of 29.15%. RCI Hospitality Holdings has a consensus price target of $28.50, suggesting a potential upside of 12.96%. Given Dave & Buster’s Entertainment’s higher probable upside, equities analysts plainly believe Dave & Buster’s Entertainment is more favorable than RCI Hospitality Holdings.

Profitability

This table compares Dave & Buster’s Entertainment and RCI Hospitality Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dave & Buster’s Entertainment 9.78% 22.71% 9.34%
RCI Hospitality Holdings 7.84% 10.75% 5.08%

Summary

Dave & Buster’s Entertainment beats RCI Hospitality Holdings on 12 of the 15 factors compared between the two stocks.

About RCI Hospitality Holdings

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 Dave & Buster's Entertainment Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dave & Buster's Entertainment Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply