WallStSmart

Carnival Plc ADS (CUK)vsRoyal Caribbean Cruises Ltd (RCL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Carnival Plc ADS generates 47% more annual revenue ($26.98B vs $18.39B). RCL leads profitability with a 24.4% profit margin vs 11.5%. CUK appears more attractively valued with a PEG of 1.08. RCL earns a higher WallStSmart Score of 74/100 (B).

CUK

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 7.0Value: 8.7Quality: 3.0
Piotroski: 5/9Altman Z: 0.89

RCL

Strong Buy

74

out of 100

Grade: B

Growth: 8.0Profit: 9.0Value: 5.3Quality: 3.8
Piotroski: 5/9Altman Z: 0.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CUKUndervalued (+80.8%)

Margin of Safety

+80.8%

Fair Value

$171.37

Current Price

$26.61

$144.76 discount

UndervaluedFair: $171.37Overvalued
RCLSignificantly Overvalued (-56.6%)

Margin of Safety

-56.6%

Fair Value

$213.17

Current Price

$265.55

$52.38 premium

UndervaluedFair: $213.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CUK4 strengths · Avg: 8.8/10
P/E RatioValuation
11.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
27.9%9/10

Every $100 of equity generates 28 in profit

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

EPS GrowthGrowth
35.8%8/10

Earnings expanding 35.8% YoY

RCL6 strengths · Avg: 8.7/10
Return on EquityProfitability
49.6%10/10

Every $100 of equity generates 50 in profit

Market CapQuality
$70.20B9/10

Large-cap with strong market position

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

Operating MarginProfitability
26.2%8/10

Strong operational efficiency at 26.2%

EPS GrowthGrowth
28.9%8/10

Earnings expanding 28.9% YoY

Areas to Watch

CUK2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.892/10

Distress zone — elevated risk

Debt/EquityHealth
2.281/10

Elevated debt levels

RCL1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.962/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CUK

The strongest argument for CUK centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.08 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 24.4% and operating margin at 26.2%. Revenue growth of 11.3% demonstrates continued momentum.

Bear Case : CUK

The primary concerns for CUK are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.28 is elevated, increasing financial risk.

Bear Case : RCL

The primary concerns for RCL are Altman Z-Score.

Key Dynamics to Monitor

CUK profiles as a value stock while RCL is a mature play — different risk/reward profiles.

CUK carries more volatility with a beta of 2.33 — expect wider price swings.

RCL is growing revenue faster at 11.3% — sustainability is the question.

RCL generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

RCL scores higher overall (74/100 vs 67/100), backed by strong 24.4% margins and 11.3% revenue growth. CUK offers better value entry with a 80.8% margin of safety. Both earn "Strong Buy" and "Strong 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.

Carnival Plc ADS

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Carnival Corporation & plc is a leisure travel company. The company is headquartered in Miami, Florida.

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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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