WallStSmart

Booking Holdings Inc (BKNG)vsRoyal Caribbean Cruises Ltd (RCL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Booking Holdings Inc generates 51% more annual revenue ($28.24B vs $18.68B). BKNG leads profitability with a 25.5% profit margin vs 23.5%. BKNG appears more attractively valued with a PEG of 0.64. BKNG earns a higher WallStSmart Score of 76/100 (B+).

BKNG

Strong Buy

76

out of 100

Grade: B+

Growth: 8.0Profit: 10.0Value: 6.7Quality: 7.5
Piotroski: 4/9Altman Z: 4.05

RCL

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 5.3Quality: 3.0
Piotroski: 5/9Altman Z: 0.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BKNGUndervalued (+10.9%)

Margin of Safety

+10.9%

Fair Value

$188.41

Current Price

$167.90

$20.51 discount

UndervaluedFair: $188.41Overvalued
RCLSignificantly Overvalued (-62.4%)

Margin of Safety

-62.4%

Fair Value

$205.49

Current Price

$245.81

$40.32 premium

UndervaluedFair: $205.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BKNG6 strengths · Avg: 9.8/10
Return on EquityProfitability
225.7%10/10

Every $100 of equity generates 226 in profit

Operating MarginProfitability
34.4%10/10

Strong operational efficiency at 34.4%

EPS GrowthGrowth
130.0%10/10

Earnings expanding 130.0% YoY

Debt/EquityHealth
-1.9210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.0510/10

Safe zone — low bankruptcy risk

Market CapQuality
$130.68B9/10

Large-cap with strong market position

RCL5 strengths · Avg: 8.8/10
Return on EquityProfitability
43.0%10/10

Every $100 of equity generates 43 in profit

Market CapQuality
$69.57B9/10

Large-cap with strong market position

Profit MarginProfitability
23.5%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.1%8/10

Strong operational efficiency at 27.1%

Areas to Watch

BKNG0 concerns · Avg: 0/10

No major concerns identified

RCL4 concerns · Avg: 1.8/10
EPS GrowthGrowth
-4.6%2/10

Earnings declined 4.6%

Free Cash FlowQuality
$-877.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.962/10

Distress zone — elevated risk

Debt/EquityHealth
2.301/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BKNG

The strongest argument for BKNG centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 25.5% and operating margin at 34.4%. PEG of 0.64 suggests the stock is reasonably priced for its growth.

Bull Case : RCL

The strongest argument for RCL centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 23.5% and operating margin at 27.1%. PEG of 1.05 suggests the stock is reasonably priced for its growth.

Bear Case : BKNG

No major red flags identified for BKNG, but monitor valuation.

Bear Case : RCL

The primary concerns for RCL are EPS Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.30 is elevated, increasing financial risk.

Key Dynamics to Monitor

RCL carries more volatility with a beta of 1.75 — expect wider price swings.

BKNG is growing revenue faster at 8.1% — sustainability is the question.

BKNG generates stronger free cash flow (3.6B), providing more financial flexibility.

Monitor TRAVEL SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BKNG scores higher overall (76/100 vs 64/100), backed by strong 25.5% margins. 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.

Booking Holdings Inc

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Booking Holdings Inc. is an American travel technology company organized in Delaware and based in Norwalk, Connecticut, that owns and operates several travel fare aggregators and travel fare metasearch engines including namesake and flagship Booking.com, Priceline.com, Agoda.com, Kayak.com, Cheapflights, Rentalcars.com, Momondo, and OpenTable.

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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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