Reading International (NASDAQ:RDIB – Get Free Report) and Marcus (NYSE:MCS – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.
Profitability
This table compares Reading International and Marcus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reading International | N/A | N/A | N/A |
| Marcus | 2.87% | 2.67% | 1.20% |
Institutional and Insider Ownership
0.4% of Reading International shares are held by institutional investors. Comparatively, 81.6% of Marcus shares are held by institutional investors. 5.4% of Reading International shares are held by insiders. Comparatively, 16.5% of Marcus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reading International | $214.46 million | N/A | N/A | ($0.20) | -87.86 |
| Marcus | $758.46 million | 1.13 | $12.69 million | $0.71 | 39.06 |
Marcus has higher revenue and earnings than Reading International. Reading International is trading at a lower price-to-earnings ratio than Marcus, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Reading International and Marcus, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reading International | 1 | 0 | 0 | 0 | 1.00 |
| Marcus | 0 | 2 | 3 | 1 | 2.83 |
Marcus has a consensus target price of $32.25, indicating a potential upside of 16.29%. Given Marcus’ stronger consensus rating and higher possible upside, analysts clearly believe Marcus is more favorable than Reading International.
Summary
Marcus beats Reading International on 12 of the 12 factors compared between the two stocks.
About Reading International
Reading International, Inc. is an entertainment and real estate company, which engages in the development, ownership, and operation of multiplex cinemas and retail and commercial real estate in the United States, Australia, and New Zealand. It operates through the Cinema Exhibition and Real Estate segments. The Cinema Exhibition segment includes Reading Cinemas, Angelika Film Center, Consolidated Theatres, City Cinemas, 44 Union Square, and Liberty Theatres brands. The Real Estate segment comprises real estate development and the rental or licensing of retail, commercial and live theater assets. The company was founded by James J. Cotter Sr. in 1999 and is headquartered in Culver City, CA.
About Marcus
The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.
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