Critical Review: Reading International (NASDAQ:RDI) and Lindblad Expeditions (NASDAQ:LIND)

Reading International (NASDAQ:RDI) and Lindblad Expeditions (NASDAQ:LIND) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

44.7% of Reading International shares are owned by institutional investors. Comparatively, 75.9% of Lindblad Expeditions shares are owned by institutional investors. 25.7% of Reading International shares are owned by insiders. Comparatively, 34.0% of Lindblad Expeditions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Reading International and Lindblad Expeditions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reading International	-11.28%	-632.66%	-4.88%
Lindblad Expeditions	-3.88%	N/A	-2.95%

Earnings & Valuation

This table compares Reading International and Lindblad Expeditions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reading International	$210.53 million	0.14	-$35.30 million	($1.04)	-1.27
Lindblad Expeditions	$644.73 million	1.01	-$31.18 million	($0.60)	-19.80

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

Analyst Recommendations

This is a breakdown of recent recommendations for Reading International and Lindblad Expeditions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reading International	0	0	0	0	0.00
Lindblad Expeditions	0	0	3	0	3.00

Lindblad Expeditions has a consensus price target of $15.67, suggesting a potential upside of 31.87%. Given Lindblad Expeditions’ stronger consensus rating and higher possible upside, analysts clearly believe Lindblad Expeditions is more favorable than Reading International.

Volatility and Risk

Reading International has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Lindblad Expeditions has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500.

Summary

Lindblad Expeditions beats Reading International on 13 of the 14 factors compared between the two stocks.

About Reading International

Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.

About Lindblad Expeditions

Lindblad Expeditions Holdings, Inc. provides marine expedition adventures and travel experience worldwide. It operates through Lindblad and Land Experiences segment. Lindblad segment provides ship-based expeditions aboard customized, nimble, and intimately-scaled vessels, which offers up-close experiences in the planet's wild and remote places, and capitals of culture; and offers expedition ship which is equipped with state-of-the-art tools for in-depth exploration with infrastructure and ports, such as Antarctica and the Arctic, and places that accessed by a ship comprising Galápagos Islands, Alaska, Baja California's Sea of Cortez and Panama, and foster engagement activities. The Land Experiences segment comprises natural habitats, which provides over 100 different expedition itineraries in more than 45 countries across seven continents, with eco-conscious expeditions and nature-focused, and small-group tours including polar bear tours and bear adventure; and DuVine provides intimate group cycling and adventure tours around the world with local cycling experts as guides in local cultural, cuisine, and accommodations. This segment also offers off the beaten path including small group travel, led by local, and experienced guides with focus on wildlife, hiking national parks, and culture; and classical journey, a curated active small-group and private custom journeys centered around cinematic walks led by expert local guides over 50 countries across the world. In addition, it has an alliance with National Geographic Partners, LLC, which provides lecturers and National Geographic experts including photographers, marine biologists, writers, naturalists, field researchers, and film crews; and partnered with World Wildlife Fund to offer conservation travel. Lindblad Expeditions Holdings, Inc. was founded in 1979 and is headquartered in New York, New York.