Royal Caribbean Cruises vs Carnival Which Outperforms?

Royal Caribbean Cruises and Carnival Corporation are two of the largest cruise line companies in the world, each offering a unique experience for travelers. Both companies have gained popularity among investors, with their stocks being closely watched by analysts and traders alike. Royal Caribbean Cruises tends to focus on luxury cruises and exotic destinations, while Carnival Corporation offers a wider range of cruising options. Investors are constantly comparing the performance and growth potential of these two industry giants to make informed decisions on where to put their money.

Royal Caribbean Cruises or Carnival?

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

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. Royal Caribbean Cruises has a dividend yield of 0.16%, while Carnival has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Royal Caribbean Cruises reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Carnival 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 Royal Caribbean Cruises P/E ratio at 24.83 and Carnival's P/E ratio at 20.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Royal Caribbean Cruises P/B ratio is 9.17 while Carnival's P/B ratio is 3.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Royal Caribbean Cruises has seen a 5-year revenue growth of 0.20%, while Carnival's is -0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Royal Caribbean Cruises's ROE at 45.40% and Carnival's ROE at 27.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $243.74 for Royal Caribbean Cruises and €21.93 for Carnival. Over the past year, Royal Caribbean Cruises's prices ranged from $113.10 to $258.70, with a yearly change of 128.74%. Carnival's prices fluctuated between €11.28 and €23.50, with a yearly change of 108.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.