Royal Caribbean Cruises Ltd (RCL)vsWaters Corporation (WAT)
RCL
Royal Caribbean Cruises Ltd
$275.24
-2.00%
CONSUMER CYCLICAL · Cap: $73.82B
WAT
Waters Corporation
$355.13
+1.32%
HEALTHCARE · Cap: $34.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Caribbean Cruises Ltd generates 388% more annual revenue ($18.39B vs $3.77B). RCL leads profitability with a 24.4% profit margin vs 11.9%. RCL appears more attractively valued with a PEG of 1.20. RCL earns a higher WallStSmart Score of 72/100 (B).
RCL
Strong Buy72
out of 100
Grade: B
WAT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-56.5%
Fair Value
$213.30
Current Price
$275.24
$61.94 premium
Margin of Safety
-63.1%
Fair Value
$201.83
Current Price
$355.13
$153.30 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 50 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 26.2%
Earnings expanding 28.9% YoY
Revenue surging 91.5% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 8.3x book value
ROE of 5.2% — below average capital efficiency
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 24.4% and operating margin at 26.2%. Revenue growth of 11.3% demonstrates continued momentum.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.
Bear Case : RCL
The primary concerns for RCL are Altman Z-Score.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.
Key Dynamics to Monitor
RCL profiles as a mature stock while WAT is a growth play — different risk/reward profiles.
RCL carries more volatility with a beta of 1.78 — expect wider price swings.
WAT is growing revenue faster at 91.5% — sustainability is the question.
RCL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
RCL scores higher overall (72/100 vs 52/100), backed by strong 24.4% margins and 11.3% 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.
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.
Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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