Royal Caribbean Cruises Ltd (RCL)vsSterling Construction Company Inc (STRL)
RCL
Royal Caribbean Cruises Ltd
$280.00
-4.53%
CONSUMER CYCLICAL · Cap: $83.90B
STRL
Sterling Construction Company Inc
$882.43
-11.20%
INDUSTRIALS · Cap: $26.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Caribbean Cruises Ltd generates 537% more annual revenue ($18.39B vs $2.88B). RCL leads profitability with a 24.4% profit margin vs 12.0%. STRL appears more attractively valued with a PEG of 1.47. RCL earns a higher WallStSmart Score of 72/100 (B).
RCL
Strong Buy72
out of 100
Grade: B
STRL
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-67.2%
Fair Value
$199.66
Current Price
$280.00
$80.34 premium
Intrinsic value data unavailable for STRL.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 46 in profit
Large-cap with strong market position
Keeps 24 of every $100 in revenue as profit
Strong operational efficiency at 26.2%
Earnings expanding 28.9% YoY
Generating 1.3B in free cash flow
Revenue surging 91.6% year-over-year
Earnings expanding 141.4% YoY
Every $100 of equity generates 29 in profit
Conservative balance sheet, low leverage
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 24.4x book value
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : STRL
The strongest argument for STRL centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 91.6% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bear Case : RCL
The primary concerns for RCL are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.22 is elevated, increasing financial risk.
Bear Case : STRL
The primary concerns for STRL are P/E Ratio, Price/Book. A P/E of 76.9x leaves little room for execution misses.
Key Dynamics to Monitor
RCL profiles as a mature stock while STRL is a growth play — different risk/reward profiles.
STRL carries more volatility with a beta of 1.82 — expect wider price swings.
STRL is growing revenue faster at 91.6% — sustainability is the question.
RCL generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
RCL scores higher overall (72/100 vs 69/100), backed by strong 24.4% margins and 11.3% 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.
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.
Sterling Construction Company Inc
INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA
Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.
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