Carnival Corporation (CCL) vs Norwegian Cruise Line Holdings Ltd. (NCLH)

Carnival Corporation and Norwegian Cruise Line Holdings Ltd. are both Travel Services companies. Carnival Corporation is the larger, with a market value of $30.1B against $6.6B — 4.6× the size. Norwegian Cruise Line Holdings Ltd. trades at the lower P/E: 8.7× against 9.6×. Norwegian Cruise Line Holdings Ltd. grew revenue faster over the last twelve months: 6.21% against 5.16%. Carnival Corporation has the higher net margin (11.2% vs 7.49%) and the higher return on invested capital (7.83% vs 5.51%). Across the 20 metrics below, Carnival Corporation leads on 13 and Norwegian Cruise Line Holdings Ltd. on 7.

Valuation

Metric CCL NCLH Travel Services median
P/E 9.63 8.75 17.52
P/S 1.13 0.66 2.24
P/B 2.37 2.61 2.61
Price to free cash flow 9.57 n/m 12.40
EV/EBITDA 7.18 7.81 12.77
EV/Sales 1.96 2.12 2.38
Earnings yield 10.38% 11.43% 3.30%
Free cash flow yield 10.45% (17.67%) 3.22%

Profitability

Metric CCL NCLH Travel Services median
Gross margin 39.74% 42.46% 67.64%
Operating margin 16.35% 15.09% 15.06%
Net margin 11.23% 7.49% 6.64%
Free cash flow margin 11.77% (11.67%) 3.21%
Return on equity 26.69% 36.73% 7.53%
Return on assets 5.93% 3.34% 3.40%
Return on invested capital 7.83% 5.51% 4.65%

Growth

Metric CCL NCLH Travel Services median
Revenue growth (TTM) 5.16% 6.21% 13.25%
EPS growth (last fiscal year) 40.28% (51.32%) —
Revenue growth, 5-year CAGR 36.61% 50.33% 28.66%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CCL NCLH Travel Services median
Debt to equity 1.92 5.84 0.32
Current ratio 0.33 0.20 1.20
Net debt to EBITDA 3.34 5.29 1.07

Dividend

Metric CCL NCLH Travel Services median
Dividend yield 0.22% — —
Payout ratio 0.00 0.00 0.00

Size

Metric CCL NCLH Travel Services median
Market cap 30.10b 6.56b 4.41b

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