Carnival vs Alkermes Which Is More Favorable?

Carnival Corporation, a major player in the cruise industry, and Alkermes PLC, a biopharmaceutical company specializing in neuroscience and mental health treatments, are two distinct companies operating in different sectors. While Carnival's stock has seen fluctuations due to the impact of the COVID-19 pandemic on the travel industry, Alkermes' stock has been affected by developments in the healthcare sector and the success of its drug treatments. Investors interested in these two stocks should consider their respective industries and future growth potential.

Carnival or Alkermes?

When comparing Carnival and Alkermes, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Carnival and Alkermes.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Carnival has a dividend yield of -%, while Alkermes has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Carnival reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alkermes reports a 5-year dividend growth of 0.00% year and a payout ratio of 9.83%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Carnival P/E ratio at 18.66 and Alkermes's P/E ratio at 14.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Carnival P/B ratio is 3.40 while Alkermes's P/B ratio is 3.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Carnival has seen a 5-year revenue growth of -0.36%, while Alkermes's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carnival's ROE at 27.41% and Alkermes's ROE at 26.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €20.37 for Carnival and $28.89 for Alkermes. Over the past year, Carnival's prices ranged from €10.60 to €20.90, with a yearly change of 97.26%. Alkermes's prices fluctuated between $22.06 and $32.88, with a yearly change of 49.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.