Brookfield Business Partners LP (BBU)vsRoyal Caribbean Cruises Ltd (RCL)
BBU
Brookfield Business Partners LP
$32.62
+6.60%
INDUSTRIALS · Cap: $2.71B
RCL
Royal Caribbean Cruises Ltd
$279.01
+2.06%
CONSUMER CYCLICAL · Cap: $76.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Brookfield Business Partners LP generates 53% more annual revenue ($27.46B vs $17.93B). RCL leads profitability with a 23.8% profit margin vs -0.1%. RCL earns a higher WallStSmart Score of 74/100 (B).
BBU
Buy52
out of 100
Grade: C-
RCL
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for BBU.
Margin of Safety
+54.3%
Fair Value
$730.08
Current Price
$279.01
$451.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 80.0% YoY
Reasonable price relative to book value
Every $100 of equity generates 48 in profit
Large-cap with strong market position
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 22.0%
Earnings expanding 37.1% YoY
Areas to Watch
ROE of 2.4% — below average capital efficiency
Weak financial health signals
Revenue declined 4.5%
Currently unprofitable
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : BBU
The strongest argument for BBU centers on EPS Growth, Price/Book.
Bull Case : RCL
The strongest argument for RCL centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 23.8% and operating margin at 22.0%. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : BBU
The primary concerns for BBU are Return on Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 19.07 is elevated, increasing financial risk.
Bear Case : RCL
The primary concerns for RCL are Altman Z-Score.
Key Dynamics to Monitor
BBU profiles as a turnaround stock while RCL is a mature play — different risk/reward profiles.
RCL carries more volatility with a beta of 1.93 — expect wider price swings.
RCL is growing revenue faster at 13.3% — sustainability is the question.
BBU generates stronger free cash flow (763M), providing more financial flexibility.
Bottom Line
RCL scores higher overall (74/100 vs 52/100), backed by strong 23.8% margins and 13.3% revenue growth. Both earn "Strong 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.
Brookfield Business Partners LP
INDUSTRIALS · CONGLOMERATES · USA
Brookfield Business Partners LP (BBU) is a leading global alternative asset manager that focuses on acquiring, operating, and enhancing a diversified portfolio of high-quality, cash-generating businesses. Capitalizing on the robust resources and expertise of its parent company, Brookfield Asset Management, BBU strategically invests in sectors such as industrials, utilities, and consumer products, employing a disciplined approach to operational improvements. With an emphasis on delivering sustainable cash distributions and capital appreciation, BBU is well-equipped to capitalize on growth opportunities, positioning itself to generate superior returns for its investors over the long term.
Visit Website →Royal Caribbean Cruises Ltd
CONSUMER CYCLICAL · TRAVEL SERVICES · USA
Royal Caribbean Group, formerly known as Royal Caribbean Cruises Ltd., is an American global cruise holding company incorporated in Liberia and based in Miami, Florida, US.
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