WallStSmart

eBay Inc (EBAY)vsRoyal Caribbean Cruises Ltd (RCL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Royal Caribbean Cruises Ltd generates 59% more annual revenue ($19.14B vs $12.01B). RCL leads profitability with a 23.8% profit margin vs 18.6%. RCL appears more attractively valued with a PEG of 1.24. RCL earns a higher WallStSmart Score of 70/100 (B-).

EBAY

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 4.49

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

EBAYSignificantly Overvalued (-28.7%)

Margin of Safety

-28.7%

Fair Value

$95.85

Current Price

$121.96

$26.11 premium

UndervaluedFair: $95.85Overvalued
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

EBAY5 strengths · Avg: 9.4/10
Return on EquityProfitability
47.3%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
55.0%10/10

Earnings expanding 55.0% YoY

Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.52B9/10

Large-cap with strong market position

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

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

EBAY4 concerns · Avg: 3.8/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
25.8x4/10

Moderate valuation

Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Debt/EquityHealth
1.603/10

Elevated debt levels

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 : EBAY

The strongest argument for EBAY centers on Return on Equity, EPS Growth, Altman Z-Score. Profitability is solid with margins at 18.6% and operating margin at 21.6%. Revenue growth of 14.8% demonstrates continued momentum.

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 : EBAY

The primary concerns for EBAY are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 1.60 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

RCL carries more volatility with a beta of 1.82 — expect wider price swings.

EBAY is growing revenue faster at 14.8% — sustainability is the question.

EBAY generates stronger free cash flow (749M), providing more financial flexibility.

Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EBAY scores higher overall (70/100 vs 70/100), backed by strong 18.6% margins and 14.8% revenue growth. 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.

eBay Inc

CONSUMER CYCLICAL · INTERNET RETAIL · USA

eBay Inc. is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website.

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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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