Royal Caribbean Cruises Ltd (RCL)vsTrip.com Group Ltd ADR (TCOM)
RCL
Royal Caribbean Cruises Ltd
$260.14
+0.44%
CONSUMER CYCLICAL · Cap: $69.57B
TCOM
Trip.com Group Ltd ADR
$39.02
+0.83%
CONSUMER CYCLICAL · Cap: $24.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Trip.com Group Ltd ADR generates 247% more annual revenue ($64.79B vs $18.68B). TCOM leads profitability with a 48.6% profit margin vs 23.5%. RCL appears more attractively valued with a PEG of 1.05. TCOM earns a higher WallStSmart Score of 69/100 (B-).
RCL
Buy64
out of 100
Grade: C+
TCOM
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.5%
Fair Value
$205.41
Current Price
$260.14
$54.73 premium
Margin of Safety
+89.3%
Fair Value
$366.27
Current Price
$39.02
$327.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 43 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 27.1%
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 49 of every $100 in revenue as profit
Generating 13.6B in free cash flow
Conservative balance sheet, low leverage
Strong operational efficiency at 24.3%
Areas to Watch
Earnings declined 4.6%
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Earnings declined 39.7%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : TCOM
The strongest argument for TCOM centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 48.6% and operating margin at 24.3%. Revenue growth of 17.2% demonstrates continued momentum.
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.
Bear Case : TCOM
The primary concerns for TCOM are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
RCL profiles as a mature stock while TCOM is a growth play — different risk/reward profiles.
RCL carries more volatility with a beta of 1.75 — expect wider price swings.
TCOM is growing revenue faster at 17.2% — sustainability is the question.
TCOM generates stronger free cash flow (13.6B), providing more financial flexibility.
Bottom Line
TCOM scores higher overall (69/100 vs 64/100), backed by strong 48.6% margins and 17.2% 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.
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.
Trip.com Group Ltd ADR
CONSUMER CYCLICAL · TRAVEL SERVICES · China
Trip.com Group Limited is a travel service provider for accommodation booking, transportation ticketing, destination and package tours, corporate travel management and other travel-related services in China and internationally. The company is headquartered in Shanghai, the People's Republic of China.
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