RCI Hospitality (NASDAQ:RICK) vs. Giftify (NASDAQ:GIFT) Head-To-Head Comparison

Giftify (NASDAQ:GIFT) and RCI Hospitality (NASDAQ:RICK) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Earnings & Valuation

This table compares Giftify and RCI Hospitality”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Giftify	$88.93 million	0.28	-$18.83 million	($0.42)	-1.89
RCI Hospitality	$295.60 million	0.68	$3.01 million	$1.86	12.39

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Giftify and RCI Hospitality, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giftify	1	0	0	0	1.00
RCI Hospitality	1	0	1	0	2.00

RCI Hospitality has a consensus price target of $98.00, suggesting a potential upside of 325.35%. Given RCI Hospitality’s stronger consensus rating and higher probable upside, analysts plainly believe RCI Hospitality is more favorable than Giftify.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Giftify	-14.02%	-56.95%	-36.32%
RCI Hospitality	5.88%	6.19%	2.81%

Risk & Volatility

Giftify has a beta of -1.45, meaning that its share price is 245% less volatile than the S&P 500. Comparatively, RCI Hospitality has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

53.8% of RCI Hospitality shares are owned by institutional investors. 23.8% of Giftify shares are owned by company insiders. Comparatively, 9.6% of RCI Hospitality shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

RCI Hospitality beats Giftify on 13 of the 14 factors compared between the two stocks.

About Giftify

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.

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.