Expedia Group, Inc. (EXPE) vs Royal Caribbean Cruises Ltd. (RCL)

Expedia Group, Inc. 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 $31.5B — 2.1× the size. Royal Caribbean Cruises Ltd. trades at the lower P/E: 14.9× against 15.8×. Expedia Group, Inc. grew revenue faster over the last twelve months: 12.0% against 8.72%. Royal Caribbean Cruises Ltd. has the higher net margin (23.5% vs 13.0%) and the higher return on invested capital (9.84% vs 0.00%). Across the 20 metrics below, Expedia Group, Inc. leads on 10 and Royal Caribbean Cruises Ltd. on 10.

Valuation

Metric EXPE RCL Travel Services median
P/E 15.84 14.92 17.52
P/S 2.02 3.48 2.24
P/B 12.85 6.22 2.61
Price to free cash flow 7.12 n/m 12.40
EV/EBITDA 7.69 12.46 12.77
EV/Sales 1.87 4.66 2.38
Earnings yield 6.31% 6.70% 3.30%
Free cash flow yield 14.04% (0.64%) 3.22%

Profitability

Metric EXPE RCL Travel Services median
Gross margin 90.43% 49.06% 67.64%
Operating margin 15.97% 27.32% 15.06%
Net margin 12.97% 23.54% 6.64%
Free cash flow margin 28.40% (2.23%) 3.21%
Return on equity 89.36% 44.37% 7.53%
Return on assets 7.27% 10.57% 3.40%
Return on invested capital 0.00% 9.84% 4.65%

Growth

Metric EXPE RCL Travel Services median
Revenue growth (TTM) 12.00% 8.72% 13.25%
EPS growth (last fiscal year) 9.61% 42.69% —
Revenue growth, 5-year CAGR 23.16% 52.02% 28.66%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric EXPE RCL Travel Services median
Debt to equity 2.21 2.18 0.32
Current ratio 0.80 0.21 1.20
Net debt to EBITDA (0.36) 3.05 1.07

Dividend

Metric EXPE RCL Travel Services median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric EXPE RCL Travel Services median
Market cap 31.48b 64.86b 4.41b

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