Norwegian Cruise Line Holdings Ltd. (NCLH) vs Travel + Leisure Co. (TNL)

Norwegian Cruise Line Holdings Ltd. and Travel + Leisure Co. are both Travel Services companies. Norwegian Cruise Line Holdings Ltd. is the larger, with a market value of $6.6B against $3.9B — 1.7× the size. Norwegian Cruise Line Holdings Ltd. trades at the lower P/E: 8.7× against 17.0×. Norwegian Cruise Line Holdings Ltd. grew revenue faster over the last twelve months: 6.21% against 4.55%. Norwegian Cruise Line Holdings Ltd. has the higher net margin (7.49% vs 5.79%) and the lower return on invested capital (5.51% vs 8.30%). Across the 19 metrics below, Norwegian Cruise Line Holdings Ltd. leads on 11 and Travel + Leisure Co. on 8.

Valuation

Metric NCLH TNL Travel Services median
P/E 8.75 16.98 17.52
P/S 0.66 0.97 2.24
P/B 2.61 n/m 2.61
Price to free cash flow n/m 8.77 12.40
EV/EBITDA 7.81 14.17 12.77
EV/Sales 2.12 2.38 2.38
Earnings yield 11.43% 5.89% 3.30%
Free cash flow yield (17.67%) 11.40% 3.22%

Profitability

Metric NCLH TNL Travel Services median
Gross margin 42.46% 45.13% 67.64%
Operating margin 15.09% 13.68% 15.06%
Net margin 7.49% 5.79% 6.64%
Free cash flow margin (11.67%) 11.04% 3.21%
Return on equity 36.73% (25.31%) 7.53%
Return on assets 3.34% 3.46% 3.40%
Return on invested capital 5.51% 8.30% 4.65%

Growth

Metric NCLH TNL Travel Services median
Revenue growth (TTM) 6.21% 4.55% 13.25%
EPS growth (last fiscal year) (51.32%) (40.89%) —
Revenue growth, 5-year CAGR 50.33% 13.23% 28.66%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NCLH TNL Travel Services median
Debt to equity 5.84 (5.60) 0.32
Current ratio 0.20 3.15 1.20
Net debt to EBITDA 5.29 7.64 1.07

Dividend

Metric NCLH TNL Travel Services median
Dividend yield — 4.48% —
Payout ratio 0.00 0.38 0.00

Size

Metric NCLH TNL Travel Services median
Market cap 6.56b 3.87b 4.41b

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