Norwegian Cruise Line Holdings Ltd (NCLH)vsRoyal Caribbean Cruises Ltd (RCL)
NCLH
Norwegian Cruise Line Holdings Ltd
$18.95
-3.51%
CONSUMER CYCLICAL · Cap: $9.02B
RCL
Royal Caribbean Cruises Ltd
$263.65
-3.07%
CONSUMER CYCLICAL · Cap: $75.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Caribbean Cruises Ltd generates 82% more annual revenue ($17.93B vs $9.83B). RCL leads profitability with a 23.8% profit margin vs 4.3%. NCLH appears more attractively valued with a PEG of 0.48. RCL earns a higher WallStSmart Score of 74/100 (B).
NCLH
Buy57
out of 100
Grade: C
RCL
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-266.6%
Fair Value
$6.26
Current Price
$18.95
$12.69 premium
Margin of Safety
+53.8%
Fair Value
$723.06
Current Price
$263.65
$459.41 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 23 in profit
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
4.3% margin — thin
Weak financial health signals
Earnings declined 9.6%
Distress zone — elevated risk
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : NCLH
The strongest argument for NCLH centers on PEG Ratio, Return on Equity. PEG of 0.48 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 23.8% and operating margin at 22.0%. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : NCLH
The primary concerns for NCLH are Profit Margin, Piotroski F-Score, EPS Growth. Debt-to-equity of 6.61 is elevated, increasing financial risk. Thin 4.3% margins leave little buffer for downturns.
Bear Case : RCL
The primary concerns for RCL are Altman Z-Score.
Key Dynamics to Monitor
NCLH profiles as a value stock while RCL is a mature play — different risk/reward profiles.
NCLH carries more volatility with a beta of 2.04 — expect wider price swings.
RCL is growing revenue faster at 13.3% — sustainability is the question.
RCL generates stronger free cash flow (116M), providing more financial flexibility.
Bottom Line
RCL scores higher overall (74/100 vs 57/100), 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.
Norwegian Cruise Line Holdings Ltd
CONSUMER CYCLICAL · TRAVEL SERVICES · USA
Norwegian Cruise Line Holdings Ltd., is a cruise company in North America, Europe, Asia-Pacific and internationally. The company is headquartered in Miami, Florida.
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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