Carnival Corporation (CCL)vsRoyal Caribbean Cruises Ltd (RCL)
CCL
Carnival Corporation
$29.59
+2.96%
CONSUMER CYCLICAL · Cap: $38.09B
RCL
Royal Caribbean Cruises Ltd
$325.74
+0.54%
CONSUMER CYCLICAL · Cap: $76.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Carnival Corporation generates 49% more annual revenue ($27.31B vs $18.39B). RCL leads profitability with a 24.4% profit margin vs 11.2%. CCL appears more attractively valued with a PEG of 1.12. RCL earns a higher WallStSmart Score of 72/100 (B).
CCL
Buy62
out of 100
Grade: C+
RCL
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.4%
Fair Value
$39.11
Current Price
$29.59
$9.52 discount
Margin of Safety
-66.2%
Fair Value
$200.82
Current Price
$325.74
$124.92 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Every $100 of equity generates 43 in profit
Large-cap with strong market position
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 26.2%
Earnings expanding 28.9% YoY
Areas to Watch
Earnings declined 6.5%
Distress zone — elevated risk
Elevated debt levels
Trading at 8.9x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CCL
The strongest argument for CCL centers on Return on Equity, P/E Ratio, Free Cash Flow. PEG of 1.12 suggests the stock is reasonably priced for its growth.
Bull Case : RCL
The strongest argument for RCL centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 24.4% and operating margin at 26.2%. Revenue growth of 11.3% demonstrates continued momentum.
Bear Case : CCL
The primary concerns for CCL are EPS Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.02 is elevated, increasing financial risk.
Bear Case : RCL
The primary concerns for RCL are Price/Book, Free Cash Flow, Altman Z-Score. 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 2.32 — expect wider price swings.
RCL is growing revenue faster at 11.3% — sustainability is the question.
CCL generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
RCL scores higher overall (72/100 vs 62/100), backed by strong 24.4% margins and 11.3% revenue growth. CCL offers better value entry with a 15.4% margin of safety. Both earn "Strong Buy" and "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.
Visit Website →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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