RCI Hospitality Holdings Inc (RICK)vsYum! Brands Inc (YUM)
RICK
RCI Hospitality Holdings Inc
$24.04
-2.75%
CONSUMER CYCLICAL · Cap: $203.10M
YUM
Yum! Brands Inc
$159.16
-0.17%
CONSUMER CYCLICAL · Cap: $44.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 2840% more annual revenue ($8.21B vs $279.43M). YUM leads profitability with a 19.0% profit margin vs 3.9%. RICK appears more attractively valued with a PEG of 0.71. YUM earns a higher WallStSmart Score of 59/100 (C).
RICK
Buy58
out of 100
Grade: C
YUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.4%
Fair Value
$57.56
Current Price
$24.04
$33.52 discount
Margin of Safety
+38.8%
Fair Value
$259.74
Current Price
$159.16
$100.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Strong operational efficiency at 31.9%
Earnings expanding 27.7% YoY
Areas to Watch
3.5% earnings growth
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 4.1% — below average capital efficiency
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : RICK
The strongest argument for RICK centers on Price/Book, PEG Ratio. PEG of 0.71 suggests the stock is reasonably priced for its growth.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
Bear Case : RICK
The primary concerns for RICK are EPS Growth, Altman Z-Score, Market Cap. Thin 3.9% margins leave little buffer for downturns.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
RICK profiles as a value stock while YUM is a mature play — different risk/reward profiles.
RICK carries more volatility with a beta of 0.82 — expect wider price swings.
YUM is growing revenue faster at 6.5% — sustainability is the question.
YUM generates stronger free cash flow (482M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (59/100 vs 58/100), backed by strong 19.0% margins. RICK offers better value entry with a 59.4% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
RCI Hospitality Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
RCI Hospitality Holdings, Inc., is engaged in hospitality and related businesses in the United States. The company is headquartered in Houston, Texas.
Visit Website →Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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