WallStSmart

Carnival Corporation (CCL)vsRoyal Caribbean Cruises Ltd (RCL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Carnival Corporation generates 44% more annual revenue ($27.59B vs $19.14B). RCL leads profitability with a 23.8% profit margin vs 11.4%. CCL appears more attractively valued with a PEG of 0.95. CCL earns a higher WallStSmart Score of 71/100 (B).

CCL

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 8.0Quality: 3.5
Piotroski: 5/9Altman Z: 0.89

RCL

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 8.5Value: 4.7Quality: 3.0
Piotroski: 5/9Altman Z: 0.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CCLUndervalued (+16.5%)

Margin of Safety

+16.5%

Fair Value

$39.62

Current Price

$29.58

$10.04 discount

UndervaluedFair: $39.62Overvalued
RCLSignificantly Overvalued (-58.3%)

Margin of Safety

-58.3%

Fair Value

$210.82

Current Price

$327.16

$116.34 premium

UndervaluedFair: $210.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CCL5 strengths · Avg: 8.2/10
Return on EquityProfitability
22.1%9/10

Every $100 of equity generates 22 in profit

PEG RatioValuation
0.958/10

Growing faster than its price suggests

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.4%8/10

Strong operational efficiency at 26.4%

RCL4 strengths · Avg: 9.5/10
Return on EquityProfitability
43.0%10/10

Every $100 of equity generates 43 in profit

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Market CapQuality
$82.16B9/10

Large-cap with strong market position

Profit MarginProfitability
23.8%9/10

Keeps 24 of every $100 in revenue as profit

Areas to Watch

CCL3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.5%4/10

3.5% revenue growth

Debt/EquityHealth
1.773/10

Elevated debt levels

Altman Z-ScoreHealth
0.892/10

Distress zone — elevated risk

RCL3 concerns · Avg: 1.7/10
Free Cash FlowQuality
$-877.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.962/10

Distress zone — elevated risk

Debt/EquityHealth
2.301/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : CCL

The strongest argument for CCL centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.95 suggests the stock is reasonably priced for its growth.

Bull Case : RCL

The strongest argument for RCL centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 23.8% and operating margin at 33.6%. PEG of 1.24 suggests the stock is reasonably priced for its growth.

Bear Case : CCL

The primary concerns for CCL are Revenue Growth, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.77 is elevated, increasing financial risk.

Bear Case : RCL

The primary concerns for RCL are Free Cash Flow, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.30 is elevated, increasing financial risk.

Key Dynamics to Monitor

CCL profiles as a value stock while RCL is a mature play — different risk/reward profiles.

CCL carries more volatility with a beta of 2.38 — expect wider price swings.

RCL is growing revenue faster at 8.8% — sustainability is the question.

CCL generates stronger free cash flow (712M), providing more financial flexibility.

Bottom Line

CCL scores higher overall (71/100 vs 70/100). Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Carnival Corporation

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Carnival Corporation & plc is a British-American cruise operator, currently the world's largest travel leisure company, with a combined fleet of over 100 vessels across 10 cruise line brands.

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Royal Caribbean Cruises Ltd

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Royal Caribbean Group, formerly known as Royal Caribbean Cruises Ltd., is an American global cruise holding company incorporated in Liberia and based in Miami, Florida, US.

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