Carnival Corporation (CCL) vs Royal Caribbean Cruises Ltd. (RCL)

Carnival Corporation and Royal Caribbean Cruises Ltd. are both Travel Services companies. Royal Caribbean Cruises Ltd. is the larger, with a market value of $64.9B against $30.1B — 2.2× the size. Carnival Corporation trades at the lower P/E: 9.6× against 14.9×. Royal Caribbean Cruises Ltd. grew revenue faster over the last twelve months: 8.72% against 5.16%. Royal Caribbean Cruises Ltd. has the higher net margin (23.5% vs 11.2%) and the higher return on invested capital (9.84% vs 7.83%). Across the 20 metrics below, Carnival Corporation leads on 10 and Royal Caribbean Cruises Ltd. on 10.

Valuation

Metric CCL RCL Travel Services median
P/E 9.63 14.92 17.52
P/S 1.13 3.48 2.24
P/B 2.37 6.22 2.61
Price to free cash flow 9.57 n/m 12.40
EV/EBITDA 7.18 12.46 12.77
EV/Sales 1.96 4.66 2.38
Earnings yield 10.38% 6.70% 3.30%
Free cash flow yield 10.45% (0.64%) 3.22%

Profitability

Metric CCL RCL Travel Services median
Gross margin 39.74% 49.06% 67.64%
Operating margin 16.35% 27.32% 15.06%
Net margin 11.23% 23.54% 6.64%
Free cash flow margin 11.77% (2.23%) 3.21%
Return on equity 26.69% 44.37% 7.53%
Return on assets 5.93% 10.57% 3.40%
Return on invested capital 7.83% 9.84% 4.65%

Growth

Metric CCL RCL Travel Services median
Revenue growth (TTM) 5.16% 8.72% 13.25%
EPS growth (last fiscal year) 40.28% 42.69% —
Revenue growth, 5-year CAGR 36.61% 52.02% 28.66%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CCL RCL Travel Services median
Debt to equity 1.92 2.18 0.32
Current ratio 0.33 0.21 1.20
Net debt to EBITDA 3.34 3.05 1.07

Dividend

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

Size

Metric CCL RCL Travel Services median
Market cap 30.10b 64.86b 4.41b

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