Royal Caribbean Cruises Ltd (RCL)vsTeradyne Inc (TER)
RCL
Royal Caribbean Cruises Ltd
$279.01
+2.06%
CONSUMER CYCLICAL · Cap: $76.09B
TER
Teradyne Inc
$323.36
+1.01%
TECHNOLOGY · Cap: $50.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Caribbean Cruises Ltd generates 462% more annual revenue ($17.93B vs $3.19B). RCL leads profitability with a 23.8% profit margin vs 17.4%. RCL appears more attractively valued with a PEG of 1.09. RCL earns a higher WallStSmart Score of 74/100 (B).
RCL
Strong Buy74
out of 100
Grade: B
TER
Strong Buy70
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
-98.5%
Fair Value
$161.93
Current Price
$323.36
$161.43 premium
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
Strong operational efficiency at 30.3%
Revenue surging 43.9% year-over-year
Earnings expanding 81.4% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 18.1x book value
Premium valuation, high expectations priced in
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 : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 17.4% and operating margin at 30.3%. Revenue growth of 43.9% demonstrates continued momentum.
Bear Case : RCL
The primary concerns for RCL are Altman Z-Score.
Bear Case : TER
The primary concerns for TER are PEG Ratio, Price/Book, P/E Ratio. A P/E of 92.5x leaves little room for execution misses.
Key Dynamics to Monitor
RCL profiles as a mature stock while TER is a growth play — different risk/reward profiles.
RCL carries more volatility with a beta of 1.93 — expect wider price swings.
TER is growing revenue faster at 43.9% — sustainability is the question.
TER generates stronger free cash flow (219M), providing more financial flexibility.
Bottom Line
RCL scores higher overall (74/100 vs 70/100), backed by strong 23.8% margins and 13.3% revenue growth. 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.
Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
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