Carnival vs Royal Caribbean Cruises Which Is More Favorable?

Carnival Corporation and Royal Caribbean Cruises are two of the biggest players in the cruise industry, renowned for their luxurious ships and exceptional service. Both companies have seen their stocks fluctuate in recent years, influenced by factors such as global economic trends, geopolitical events, and health crises like the COVID-19 pandemic. Investors often compare the two stocks to determine which offers better potential for growth and return on investment. Let's delve deeper into the Carnival vs Royal Caribbean Cruises stocks to analyze their performance and future prospects.

Carnival or Royal Caribbean Cruises?

When comparing Carnival and Royal Caribbean Cruises, 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 Royal Caribbean Cruises.

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 Royal Caribbean Cruises has a dividend yield of 0.16%. 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, Royal Caribbean Cruises 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 19.86 and Royal Caribbean Cruises's P/E ratio at 24.78. 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 3.61 while Royal Caribbean Cruises's P/B ratio is 9.15.

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 -0.34%, while Royal Caribbean Cruises's is 0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carnival's ROE at 27.41% and Royal Caribbean Cruises's ROE at 45.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €22.46 for Carnival and $243.11 for Royal Caribbean Cruises. Over the past year, Carnival's prices ranged from €11.28 to €23.50, with a yearly change of 108.33%. Royal Caribbean Cruises's prices fluctuated between $113.10 and $258.70, with a yearly change of 128.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.