We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RICK vs. CNK: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of RCI Hospitality (RICK - Free Report) and Cinemark Holdings (CNK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
RCI Hospitality has a Zacks Rank of #2 (Buy), while Cinemark Holdings has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RICK has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
RICK currently has a forward P/E ratio of 15.75, while CNK has a forward P/E of 18.55. We also note that RICK has a PEG ratio of 1.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CNK currently has a PEG ratio of 1.85.
Another notable valuation metric for RICK is its P/B ratio of 3.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CNK has a P/B of 4.94.
These metrics, and several others, help RICK earn a Value grade of B, while CNK has been given a Value grade of C.
RICK has seen stronger estimate revision activity and sports more attractive valuation metrics than CNK, so it seems like value investors will conclude that RICK is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
RICK vs. CNK: Which Stock Is the Better Value Option?
Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of RCI Hospitality (RICK - Free Report) and Cinemark Holdings (CNK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
RCI Hospitality has a Zacks Rank of #2 (Buy), while Cinemark Holdings has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RICK has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
RICK currently has a forward P/E ratio of 15.75, while CNK has a forward P/E of 18.55. We also note that RICK has a PEG ratio of 1.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CNK currently has a PEG ratio of 1.85.
Another notable valuation metric for RICK is its P/B ratio of 3.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CNK has a P/B of 4.94.
These metrics, and several others, help RICK earn a Value grade of B, while CNK has been given a Value grade of C.
RICK has seen stronger estimate revision activity and sports more attractive valuation metrics than CNK, so it seems like value investors will conclude that RICK is the superior option right now.