WallStSmart

Norwegian Cruise Line Holdings Ltd (NCLH)vsRoyal Caribbean Cruises Ltd (RCL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Caribbean Cruises Ltd generates 82% more annual revenue ($17.93B vs $9.83B). RCL leads profitability with a 23.8% profit margin vs 4.3%. NCLH appears more attractively valued with a PEG of 0.48. RCL earns a higher WallStSmart Score of 74/100 (B).

NCLH

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 7.3Quality: 2.5
Piotroski: 3/9Altman Z: 0.16

RCL

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 8.0Value: 10.0Quality: 3.8
Piotroski: 5/9Altman Z: 0.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NCLHSignificantly Overvalued (-266.6%)

Margin of Safety

-266.6%

Fair Value

$6.26

Current Price

$18.95

$12.69 premium

UndervaluedFair: $6.26Overvalued
RCLUndervalued (+53.8%)

Margin of Safety

+53.8%

Fair Value

$723.06

Current Price

$263.65

$459.41 discount

UndervaluedFair: $723.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NCLH2 strengths · Avg: 9.5/10
PEG RatioValuation
0.4810/10

Growing faster than its price suggests

Return on EquityProfitability
23.3%9/10

Every $100 of equity generates 23 in profit

RCL6 strengths · Avg: 8.7/10
Return on EquityProfitability
47.7%10/10

Every $100 of equity generates 48 in profit

Market CapQuality
$75.79B9/10

Large-cap with strong market position

Profit MarginProfitability
23.8%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
18.0x8/10

Attractively priced relative to earnings

Operating MarginProfitability
22.0%8/10

Strong operational efficiency at 22.0%

EPS GrowthGrowth
37.1%8/10

Earnings expanding 37.1% YoY

Areas to Watch

NCLH4 concerns · Avg: 2.5/10
Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-9.6%2/10

Earnings declined 9.6%

Altman Z-ScoreHealth
0.162/10

Distress zone — elevated risk

RCL1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.962/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : NCLH

The strongest argument for NCLH centers on PEG Ratio, Return on Equity. PEG of 0.48 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 23.8% and operating margin at 22.0%. Revenue growth of 13.3% demonstrates continued momentum.

Bear Case : NCLH

The primary concerns for NCLH are Profit Margin, Piotroski F-Score, EPS Growth. Debt-to-equity of 6.61 is elevated, increasing financial risk. Thin 4.3% margins leave little buffer for downturns.

Bear Case : RCL

The primary concerns for RCL are Altman Z-Score.

Key Dynamics to Monitor

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

NCLH carries more volatility with a beta of 2.04 — expect wider price swings.

RCL is growing revenue faster at 13.3% — sustainability is the question.

RCL generates stronger free cash flow (116M), providing more financial flexibility.

Bottom Line

RCL scores higher overall (74/100 vs 57/100), backed by strong 23.8% margins and 13.3% 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.

Norwegian Cruise Line Holdings Ltd

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Norwegian Cruise Line Holdings Ltd., is a cruise company in North America, Europe, Asia-Pacific and internationally. The company is headquartered in Miami, Florida.

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.

Want to dig deeper into these stocks?