Royal Caribbean Cruises Ltd. (RCL) vs Trip.com Group Limited Sponsored ADR (TCOM)

Royal Caribbean Cruises Ltd. and Trip.com Group Limited Sponsored ADR are both Travel Services companies. Royal Caribbean Cruises Ltd. is the larger, with a market value of $64.9B against $26.0B — 2.5× the size. Trip.com Group Limited Sponsored ADR trades at the lower P/E: 5.8× against 14.9×. Trip.com Group Limited Sponsored ADR grew revenue faster over the last twelve months: 22.0% against 8.72%. Trip.com Group Limited Sponsored ADR has the higher net margin (36.4% vs 23.5%) and the lower return on invested capital (6.10% vs 9.84%). Across the 20 metrics below, Trip.com Group Limited Sponsored ADR leads on 15 and Royal Caribbean Cruises Ltd. on 5.

Valuation

Metric RCL TCOM Travel Services median
P/E 14.92 5.82 17.52
P/S 3.48 2.60 2.24
P/B 6.22 1.01 2.61
Price to free cash flow n/m 3.16 12.40
EV/EBITDA 12.46 11.05 12.77
EV/Sales 4.66 1.78 2.38
Earnings yield 6.70% 17.17% 3.30%
Free cash flow yield (0.64%) 31.60% 3.22%

Profitability

Metric RCL TCOM Travel Services median
Gross margin 49.06% 80.05% 67.64%
Operating margin 27.32% 16.12% 15.06%
Net margin 23.54% 36.39% 6.64%
Free cash flow margin (2.23%) 0.00% 3.21%
Return on equity 44.37% 0.00% 7.53%
Return on assets 10.57% 9.52% 3.40%
Return on invested capital 9.84% 6.10% 4.65%

Growth

Metric RCL TCOM Travel Services median
Revenue growth (TTM) 8.72% 21.96% 13.25%
EPS growth (last fiscal year) 42.69% 101.18% —
Revenue growth, 5-year CAGR 52.02% 23.22% 28.66%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RCL TCOM Travel Services median
Debt to equity 2.18 0.16 0.32
Current ratio 0.21 1.33 1.20
Net debt to EBITDA 3.05 (2.81) 1.07

Dividend

Metric RCL TCOM Travel Services median
Dividend yield — 0.09% —
Payout ratio 0.00 0.00 0.00

Size

Metric RCL TCOM Travel Services median
Market cap 64.86b 25.95b 4.41b

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