Royal Caribbean Cruises Ltd (RCL)vsTravel + Leisure Co (TNL)
RCL
Royal Caribbean Cruises Ltd
$279.01
+2.06%
CONSUMER CYCLICAL · Cap: $76.09B
TNL
Travel + Leisure Co
$71.88
+1.65%
CONSUMER CYCLICAL · Cap: $4.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Caribbean Cruises Ltd generates 346% more annual revenue ($17.93B vs $4.02B). RCL leads profitability with a 23.8% profit margin vs 5.7%. TNL appears more attractively valued with a PEG of 0.54. RCL earns a higher WallStSmart Score of 74/100 (B).
RCL
Strong Buy74
out of 100
Grade: B
TNL
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.3%
Fair Value
$730.08
Current Price
$279.01
$451.07 discount
Margin of Safety
+46.1%
Fair Value
$134.18
Current Price
$71.88
$62.30 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 48 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 22.0%
Earnings expanding 37.1% YoY
Growing faster than its price suggests
Strong operational efficiency at 21.4%
Earnings expanding 20.2% YoY
Areas to Watch
Distress zone — elevated risk
ROE of 0.0% — below average capital efficiency
5.7% margin — thin
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 23.8% and operating margin at 22.0%. Revenue growth of 13.3% demonstrates continued momentum.
Bull Case : TNL
The strongest argument for TNL centers on PEG Ratio, Operating Margin, EPS Growth. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bear Case : RCL
The primary concerns for RCL are Altman Z-Score.
Bear Case : TNL
The primary concerns for TNL are Return on Equity, Profit Margin.
Key Dynamics to Monitor
RCL profiles as a mature stock while TNL is a value play — different risk/reward profiles.
RCL carries more volatility with a beta of 1.93 — 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 60/100), backed by strong 23.8% margins and 13.3% revenue growth. TNL offers better value entry with a 46.1% margin of safety. 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.
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.
Travel + Leisure Co
CONSUMER CYCLICAL · TRAVEL SERVICES · USA
Travel Leisure Co. offers hospitality products and services in the United States and internationally. The company is headquartered in Orlando, Florida.
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