Financial Comparison: RCI Hospitality (NASDAQ:RICK) & BBQ (NASDAQ:BBQ)

BBQ (NASDAQ:BBQGet Rating) and RCI Hospitality (NASDAQ:RICKGet Rating) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Volatility and Risk

BBQ has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, RCI Hospitality has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
BBQ 10.27% 17.83% 5.93%
RCI Hospitality 15.16% 23.93% 11.41%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for BBQ and RCI Hospitality, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BBQ 0 0 1 0 3.00
RCI Hospitality 0 0 1 0 3.00

BBQ presently has a consensus target price of $25.00, indicating a potential upside of 85.87%. RCI Hospitality has a consensus target price of $110.00, indicating a potential upside of 88.00%. Given RCI Hospitality’s higher probable upside, analysts plainly believe RCI Hospitality is more favorable than BBQ.

Earnings & Valuation

This table compares BBQ and RCI Hospitality’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BBQ $206.44 million 0.70 $24.02 million $2.42 5.56
RCI Hospitality $195.26 million 2.82 $30.34 million $3.90 15.00

RCI Hospitality has lower revenue, but higher earnings than BBQ. BBQ is trading at a lower price-to-earnings ratio than RCI Hospitality, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

69.0% of BBQ shares are owned by institutional investors. Comparatively, 53.2% of RCI Hospitality shares are owned by institutional investors. 43.8% of BBQ shares are owned by company insiders. Comparatively, 8.1% of RCI Hospitality shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

RCI Hospitality beats BBQ on 9 of the 12 factors compared between the two stocks.

BBQ Company Profile (Get Rating)

BBQ Holdings, Inc. develops, owns, operates, and franchises casual and fast dining restaurants under the Famous Dave's, Village Inn, Clark Crew BBQ, Granite City, Tahoe Joe's Steakhouse, Bakers Square, and Real Urban Barbecue names in the United States, Canada, and the United Arab Emirates. It offers smoked, barbequed, and grilled meats, as well as entrée items, and side dishes and appetizers. The company operates full-service and counter-service restaurants. As of March 14, 2022, it had 100 company owned locations and approximately 200 franchised locations, including ghost kitchens operating out of the kitchen of another restaurant location or shared kitchen space. BBQ Holdings, Inc. was incorporated in 1994 and is based in Minnetonka, Minnesota.

RCI Hospitality Company Profile (Get Rating)

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.

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