Analyzing Reading International (NASDAQ:RDI) & Viking (NYSE:VIK)

Viking (NYSE:VIK) and Reading International (NASDAQ:RDI) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

Viking has a beta of 2.12, suggesting that its stock price is 112% more volatile than the S&P 500. Comparatively, Reading International has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Profitability

This table compares Viking and Reading International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viking	15.53%	716.92%	9.82%
Reading International	-6.52%	N/A	-3.09%

Valuation & Earnings

This table compares Viking and Reading International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viking	$5.33 billion	6.09	$152.33 million	$2.14	34.27
Reading International	$210.53 million	0.11	-$35.30 million	($0.61)	-1.67

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

Institutional and Insider Ownership

98.8% of Viking shares are held by institutional investors. Comparatively, 44.7% of Reading International shares are held by institutional investors. 32.4% of Reading International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Viking and Reading International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viking	1	5	11	0	2.59
Reading International	1	0	0	0	1.00

Viking currently has a consensus target price of $66.00, indicating a potential downside of 10.01%. Given Viking’s stronger consensus rating and higher probable upside, analysts clearly believe Viking is more favorable than Reading International.

Summary

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

About Viking

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.

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.