RCI Hospitality (NASDAQ:RICK) & Bluegreen Vacations (OTCMKTS:BVHBB) Critical Contrast

Bluegreen Vacations (OTCMKTS:BVHBB) and RCI Hospitality (NASDAQ:RICK) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Valuation and Earnings

This table compares Bluegreen Vacations and RCI Hospitality”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bluegreen Vacations	N/A	N/A	N/A	N/A	N/A
RCI Hospitality	$295.60 million	0.75	$3.01 million	$1.86	13.63

RCI Hospitality has higher revenue and earnings than Bluegreen Vacations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Bluegreen Vacations and RCI Hospitality, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bluegreen Vacations	0	0	0	0	0.00
RCI Hospitality	1	0	1	0	2.00

RCI Hospitality has a consensus target price of $98.00, suggesting a potential upside of 286.44%. Given RCI Hospitality’s stronger consensus rating and higher possible upside, analysts plainly believe RCI Hospitality is more favorable than Bluegreen Vacations.

Profitability

This table compares Bluegreen Vacations and RCI Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bluegreen Vacations	N/A	N/A	N/A
RCI Hospitality	5.88%	6.19%	2.81%

Insider and Institutional Ownership

20.7% of Bluegreen Vacations shares are held by institutional investors. Comparatively, 53.8% of RCI Hospitality shares are held by institutional investors. 88.2% of Bluegreen Vacations shares are held by company insiders. Comparatively, 9.6% of RCI Hospitality shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

RCI Hospitality beats Bluegreen Vacations on 8 of the 9 factors compared between the two stocks.

About Bluegreen Vacations

Bluegreen Vacations Holding Corporation operates as a vacation ownership company. The company markets and sells vacation ownership interests (VOI); and manages resorts in leisure and urban destinations, including Orlando, Las Vegas, Myrtle Beach, Charleston and New Orleans, and others. It also provides resort management, mortgage, title, reservation, and construction design and development services; and financing to qualified VOI purchasers, as well as management services to the vacation club and homeowners' associations. The company was founded in 1966 and is headquartered in Boca Raton, Florida.

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.