Carnival vs Norwegian Cruise Line Which Performs Better?

Both Carnival Corporation and Norwegian Cruise Line Holdings are major players in the cruise industry, offering unique experiences for travelers around the world. Carnival, the larger of the two companies, has a global presence with a diverse fleet of ships. Norwegian Cruise Line, on the other hand, is known for its innovative ship designs and freestyle cruising concept. Both companies have faced challenges in recent years, but with the potential for growth in the cruise industry post-pandemic, their stocks may present interesting investment opportunities.

Carnival or Norwegian Cruise Line?

When comparing Carnival and Norwegian Cruise Line, 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 Norwegian Cruise Line.

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 Norwegian Cruise Line 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, Norwegian Cruise Line reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Norwegian Cruise Line's P/E ratio at 21.97. 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 Norwegian Cruise Line's P/B ratio is 10.63.

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 Norwegian Cruise Line's is -0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carnival's ROE at 27.41% and Norwegian Cruise Line's ROE at 88.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €20.37 for Carnival and $26.88 for Norwegian Cruise Line. Over the past year, Carnival's prices ranged from €10.60 to €20.90, with a yearly change of 97.26%. Norwegian Cruise Line's prices fluctuated between $12.87 and $27.94, with a yearly change of 117.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.