Royal Caribbean Cruises Ltd (RCL)vsTravel + Leisure Co (TNL)
RCL
Royal Caribbean Cruises Ltd
$310.54
+4.10%
CONSUMER CYCLICAL · Cap: $75.41B
TNL
Travel + Leisure Co
$68.38
+1.71%
CONSUMER CYCLICAL · Cap: $3.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Caribbean Cruises Ltd generates 356% more annual revenue ($18.68B vs $4.09B). RCL leads profitability with a 23.5% profit margin vs 5.8%. TNL appears more attractively valued with a PEG of 0.54. RCL earns a higher WallStSmart Score of 64/100 (C+).
RCL
Buy64
out of 100
Grade: C+
TNL
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.1%
Fair Value
$205.84
Current Price
$310.54
$104.70 premium
Margin of Safety
-54.6%
Fair Value
$46.77
Current Price
$68.38
$21.61 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 43 in profit
Large-cap with strong market position
Keeps 24 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 27.1%
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Trading at 8.1x book value
Earnings declined 4.6%
Negative free cash flow — burning cash
Distress zone — elevated risk
4.4% revenue growth
Distress zone — elevated risk
ROE of 0.0% — below average capital efficiency
5.8% 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 23.5% and operating margin at 27.1%. PEG of 0.95 suggests the stock is reasonably priced for its growth.
Bull Case : TNL
The strongest argument for TNL centers on Debt/Equity, PEG Ratio, P/E Ratio. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bear Case : RCL
The primary concerns for RCL are Price/Book, EPS Growth, Free Cash Flow. Debt-to-equity of 2.30 is elevated, increasing financial risk.
Bear Case : TNL
The primary concerns for TNL are Revenue Growth, Altman Z-Score, Return on Equity.
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 1.82 — expect wider price swings.
RCL is growing revenue faster at 6.5% — sustainability is the question.
TNL generates stronger free cash flow (140M), providing more financial flexibility.
Bottom Line
RCL scores higher overall (64/100 vs 55/100), backed by strong 23.5% margins. Both earn "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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