WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Royal Caribbean Cruises Ltd generates 84% more annual revenue ($18.68B vs $10.15B). RCL leads profitability with a 23.5% profit margin vs 7.5%. RCL appears more attractively valued with a PEG of 1.05. NCLH earns a higher WallStSmart Score of 71/100 (B).

NCLH

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 6.0Value: 7.0Quality: 2.5
Piotroski: 3/9Altman Z: 0.32

RCL

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 5.3Quality: 3.0
Piotroski: 5/9Altman Z: 0.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NCLH.

RCLSignificantly Overvalued (-62.5%)

Margin of Safety

-62.5%

Fair Value

$205.41

Current Price

$260.14

$54.73 premium

UndervaluedFair: $205.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NCLH4 strengths · Avg: 9.3/10
P/E RatioValuation
9.3x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
616.0%10/10

Earnings expanding 616.0% YoY

Return on EquityProfitability
23.4%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

RCL5 strengths · Avg: 8.8/10
Return on EquityProfitability
43.0%10/10

Every $100 of equity generates 43 in profit

Market CapQuality
$69.57B9/10

Large-cap with strong market position

Profit MarginProfitability
23.5%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.1%8/10

Strong operational efficiency at 27.1%

Areas to Watch

NCLH4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Profit MarginProfitability
7.5%3/10

7.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.322/10

Distress zone — elevated risk

RCL4 concerns · Avg: 1.8/10
EPS GrowthGrowth
-4.6%2/10

Earnings declined 4.6%

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 : NCLH

The strongest argument for NCLH centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.30 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 : NCLH

The primary concerns for NCLH are Revenue Growth, Profit Margin, Piotroski F-Score. Debt-to-equity of 5.84 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

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

NCLH carries more volatility with a beta of 1.88 — expect wider price swings.

RCL is growing revenue faster at 6.5% — sustainability is the question.

NCLH generates stronger free cash flow (178M), providing more financial flexibility.

Bottom Line

NCLH scores higher overall (71/100 vs 64/100). 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.

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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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