Royal Caribbean Cruises Ltd (RCL)vsTE Connectivity Ltd (TEL)
RCL
Royal Caribbean Cruises Ltd
$279.01
+2.06%
CONSUMER CYCLICAL · Cap: $76.09B
TEL
TE Connectivity Ltd
$206.37
+2.78%
TECHNOLOGY · Cap: $60.58B
Smart Verdict
WallStSmart Research — data-driven comparison
TE Connectivity Ltd generates 1% more annual revenue ($18.09B vs $17.93B). RCL leads profitability with a 23.8% profit margin vs 11.4%. RCL appears more attractively valued with a PEG of 1.09. TEL earns a higher WallStSmart Score of 74/100 (B).
RCL
Strong Buy74
out of 100
Grade: B
TEL
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.3%
Fair Value
$730.08
Current Price
$279.01
$451.07 discount
Margin of Safety
+29.8%
Fair Value
$325.26
Current Price
$206.37
$118.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Large-cap with strong market position
Strong operational efficiency at 20.9%
Revenue surging 21.7% year-over-year
Earnings expanding 44.4% YoY
Areas to Watch
Distress zone — elevated risk
Moderate valuation
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 23.8% and operating margin at 22.0%. Revenue growth of 13.3% demonstrates continued momentum.
Bull Case : TEL
The strongest argument for TEL centers on Market Cap, Operating Margin, Revenue Growth. Revenue growth of 21.7% demonstrates continued momentum. PEG of 1.14 suggests the stock is reasonably priced for its growth.
Bear Case : RCL
The primary concerns for RCL are Altman Z-Score.
Bear Case : TEL
The primary concerns for TEL are P/E Ratio.
Key Dynamics to Monitor
RCL profiles as a mature stock while TEL is a growth play — different risk/reward profiles.
RCL carries more volatility with a beta of 1.93 — expect wider price swings.
TEL is growing revenue faster at 21.7% — sustainability is the question.
TEL generates stronger free cash flow (607M), providing more financial flexibility.
Bottom Line
RCL scores higher overall (74/100 vs 74/100), backed by strong 23.8% margins and 13.3% revenue growth. TEL offers better value entry with a 29.8% 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.
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.
TE Connectivity Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.
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