Expedia Group Inc. (EXPE)vsRoyal Caribbean Cruises Ltd (RCL)
EXPE
Expedia Group Inc.
$279.35
-1.83%
CONSUMER CYCLICAL · Cap: $32.95B
RCL
Royal Caribbean Cruises Ltd
$245.81
-1.57%
CONSUMER CYCLICAL · Cap: $69.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Caribbean Cruises Ltd generates 19% more annual revenue ($18.68B vs $15.70B). RCL leads profitability with a 23.5% profit margin vs 13.0%. EXPE appears more attractively valued with a PEG of 0.78. EXPE earns a higher WallStSmart Score of 72/100 (B).
EXPE
Strong Buy72
out of 100
Grade: B
RCL
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-8.6%
Fair Value
$215.11
Current Price
$279.35
$64.24 premium
Margin of Safety
-62.4%
Fair Value
$205.49
Current Price
$245.81
$40.32 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 168 in profit
Earnings expanding 188.7% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Generating 1.3B 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 27.1%
Areas to Watch
Trading at 27.7x book value
Distress zone — elevated risk
Elevated debt levels
Earnings declined 4.6%
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : EXPE
The strongest argument for EXPE centers on Return on Equity, EPS Growth, PEG Ratio. Revenue growth of 14.0% demonstrates continued momentum. PEG of 0.78 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 23.5% and operating margin at 27.1%. PEG of 1.05 suggests the stock is reasonably priced for its growth.
Bear Case : EXPE
The primary concerns for EXPE are Price/Book, Altman Z-Score, Debt/Equity. Debt-to-equity of 4.70 is elevated, increasing financial risk.
Bear Case : RCL
The primary concerns for RCL are EPS Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.30 is elevated, increasing financial risk.
Key Dynamics to Monitor
EXPE profiles as a value stock while RCL is a mature play — different risk/reward profiles.
RCL carries more volatility with a beta of 1.75 — expect wider price swings.
EXPE is growing revenue faster at 14.0% — sustainability is the question.
EXPE generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
EXPE scores higher overall (72/100 vs 64/100) and 14.0% revenue growth. 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.
Expedia Group Inc.
CONSUMER CYCLICAL · TRAVEL SERVICES · USA
Expedia Group, Inc. is an American online travel shopping company for consumer and small business travel. Its websites, which are primarily travel fare aggregators and travel metasearch engines, include Expedia.com, Vrbo (previously HomeAway), Hotels.com, Hotwire.com, Orbitz, Travelocity, trivago and CarRentals.com.
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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