Royal Caribbean vs. Carnival: Performance Comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Profitability Comparison: Royal Caribbean achieved an adjusted net income of $4.3 billion on $17.9 billion in revenue last year, boasting a profit margin of 24%, while Carnival's margin stands at only 11%, providing Royal Caribbean with a stronger capacity for reinvestment and risk management in the competitive landscape.
- Future Growth Expectations: Royal Caribbean anticipates an annualized earnings growth of 20% through 2027, compared to Carnival's plan for a cumulative 50% adjusted earnings growth from 2025 to 2029, highlighting Royal Caribbean's superior profitability and market positioning.
- Stock Performance Discrepancy: Although both companies have shown similar stock performance over the past year, Royal Caribbean's shares surged 309% over the last three years, while Carnival's increased by only 142%, indicating Royal Caribbean's attractiveness for long-term investment returns.
- Market Positioning Strategy: Royal Caribbean focuses on the premium market, investing in new ships and unique destinations, which is expected to expand its customer base, while Carnival competes aggressively on price to attract a broader audience, a strategy that may drive volume but could compromise long-term profitability compared to Royal Caribbean.
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Analyst Views on RCL
Wall Street analysts forecast RCL stock price to rise
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 282.060
Low
275.00
Averages
327.80
High
400.00
Current: 282.060
Low
275.00
Averages
327.80
High
400.00
About RCL
Royal Caribbean Cruises Ltd. is a cruise company, which owns and operates three global cruise brands: Royal Caribbean, Celebrity Cruises and Silversea Cruises. It also has an interest in TUI Cruises GmbH, which operates the German brands TUI Cruises and Hapag-Lloyd Cruises. Its ships offer a selection of worldwide itineraries that call on approximately 1,000 destinations on all seven continents. Royal Caribbean offers cruises and land destinations that generally feature a casual ambiance, as well as a variety of activities and entertainment venues. Celebrity Cruises offers a range of itineraries to destinations, including Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, New Zealand, the Panama Canal and South America, with cruise lengths ranging from three to 14 nights. It also offers a range of private land destinations through Perfect Day at CocoCay and Royal Beach Club collection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Royal Caribbean vs. Carnival: Profitability Comparison
- Profitability Analysis: Royal Caribbean achieved $4.3 billion in adjusted net income on $17.9 billion in revenue last year, resulting in a profit margin of 24%, showcasing its strong pricing power and profitability in the market.
- Future Growth Expectations: Royal Caribbean anticipates an annualized earnings growth of 20% through 2027, compared to Carnival's 12%, indicating that Royal Caribbean has a stronger potential for long-term investment returns.
- Market Performance Discrepancy: While both companies' stocks performed similarly over the past year, Royal Caribbean's stock surged 309% over the past three years, compared to Carnival's 142% increase, highlighting Royal Caribbean's advantage in long-term investments.
- Strategic Investment Direction: Royal Caribbean is investing in new ships and unique destinations to expand its customer base and enhance profitability, while Carnival's strategy focuses on price competition to attract a broader customer base, which may impact its long-term profitability.
See More
Royal Caribbean vs. Carnival: Performance Comparison
- Profitability Comparison: Royal Caribbean achieved an adjusted net income of $4.3 billion on $17.9 billion in revenue last year, boasting a profit margin of 24%, while Carnival's margin stands at only 11%, providing Royal Caribbean with a stronger capacity for reinvestment and risk management in the competitive landscape.
- Future Growth Expectations: Royal Caribbean anticipates an annualized earnings growth of 20% through 2027, compared to Carnival's plan for a cumulative 50% adjusted earnings growth from 2025 to 2029, highlighting Royal Caribbean's superior profitability and market positioning.
- Stock Performance Discrepancy: Although both companies have shown similar stock performance over the past year, Royal Caribbean's shares surged 309% over the last three years, while Carnival's increased by only 142%, indicating Royal Caribbean's attractiveness for long-term investment returns.
- Market Positioning Strategy: Royal Caribbean focuses on the premium market, investing in new ships and unique destinations, which is expected to expand its customer base, while Carnival competes aggressively on price to attract a broader audience, a strategy that may drive volume but could compromise long-term profitability compared to Royal Caribbean.
See More
Norwegian Cruise Line's Poor Performance Leads to Stock Decline
- Disappointing Earnings Report: Norwegian Cruise Line's fourth-quarter revenue rose 6% to $2.2 billion, driven by higher capacity days, yet fell short of the $2.34 billion estimate, indicating management execution gaps that led to decreased market confidence.
- Significant Stock Decline: The stock plummeted 24% last month due to disappointing earnings and geopolitical instability from the Iran war, reflecting investor concerns about the company's future prospects amidst rising oil prices.
- Improved Profitability: Despite missing revenue expectations, adjusted EBITDA increased by 11% to $2.73 billion, and adjusted earnings per share surged 46% to $0.28, demonstrating effective cost control, yet failing to reverse the overall negative trend.
- Board Changes: Following pressure from activist investor Elliott Investment Management, Norwegian has appointed five new board members, which, while not immediately boosting stock prices, may lay the groundwork for future strategic adjustments and improvements.
See More
Norwegian Cruise Line Misses Q4 Revenue Estimates
- Revenue Miss: Norwegian Cruise Line's Q4 revenue rose 6% to $2.2 billion, falling short of the $2.34 billion estimate, as higher capacity days contributed to growth but execution gaps significantly impacted performance.
- Profitability Improvement: Adjusted EBITDA increased by 11% to $2.73 billion, while adjusted earnings per share surged 46% to $0.28, exceeding expectations of $0.27, indicating effective cost management despite revenue challenges.
- Bleak Outlook: The company forecasts flat net yields for 2026, with cruise costs expected to rise by 0.9%, which will pressure profitability; adjusted EPS guidance of $2.38 is below the consensus of $2.60, reflecting ongoing challenges.
- Board Changes: Following pressure from activist investor Elliott Management, Norwegian appointed five new board members, which, while not boosting stock prices immediately, may set the stage for future improvements in governance and performance.
See More
Norwegian Cruise Line Reports Disappointing Earnings, Stock Falls 24%
- Disappointing Earnings Report: Norwegian Cruise Line's fourth-quarter revenue rose 6% to $2.2 billion, falling short of market expectations of $2.34 billion, indicating management execution gaps that have eroded market confidence.
- Improved Profitability: Despite revenue misses, adjusted EBITDA increased by 11% to $2.73 billion, and adjusted earnings per share surged 46% to $0.28, exceeding expectations of $0.27, demonstrating effective cost control measures.
- Bleak Future Outlook: Norwegian anticipates flat net yields for 2026, with adjusted earnings per share projected at $2.38, below the consensus estimate of $2.60, highlighting ongoing fundamental challenges facing the company.
- Investor Attention: Activist investor Elliott Investment Management called for urgent board reforms, resulting in the appointment of five new board members, which, while not boosting stock prices immediately, may lay the groundwork for future improvements.
See More
US Stocks Close Mixed Amid Oil Surge and Economic Data
- Market Fluctuations: The S&P 500 Index closed up 0.11%, while the Dow Jones Industrial Average fell 0.13%, and the Nasdaq 100 Index rose 0.11%, reflecting volatility influenced by surging oil prices and economic data.
- Positive Economic Data: Weekly initial unemployment claims unexpectedly fell by 9,000 to 202,000, indicating a stronger labor market than the anticipated increase to 212,000, which could impact the Fed's interest rate policy.
- Impact of Oil Surge: Crude oil prices soared over 11% due to President Trump's tougher stance on Iran, leading to sharp declines in airline and cruise line stocks, with United Airlines and Carnival both down more than 3%.
- Corporate Developments: SBA Communications surged over 18% as it explores potential acquisition options, while Globalstar rose over 13% amid reports of Amazon's interest in acquiring the company, highlighting market focus on M&A activity.
See More
Royal Caribbean vs. Carnival: Profitability Comparison
- Profitability Analysis: Royal Caribbean achieved $4.3 billion in adjusted net income on $17.9 billion in revenue last year, resulting in a profit margin of 24%, showcasing its strong pricing power and profitability in the market.
- Future Growth Expectations: Royal Caribbean anticipates an annualized earnings growth of 20% through 2027, compared to Carnival's 12%, indicating that Royal Caribbean has a stronger potential for long-term investment returns.
- Market Performance Discrepancy: While both companies' stocks performed similarly over the past year, Royal Caribbean's stock surged 309% over the past three years, compared to Carnival's 142% increase, highlighting Royal Caribbean's advantage in long-term investments.
- Strategic Investment Direction: Royal Caribbean is investing in new ships and unique destinations to expand its customer base and enhance profitability, while Carnival's strategy focuses on price competition to attract a broader customer base, which may impact its long-term profitability.
See More
Royal Caribbean vs. Carnival: Performance Comparison
- Profitability Comparison: Royal Caribbean achieved an adjusted net income of $4.3 billion on $17.9 billion in revenue last year, boasting a profit margin of 24%, while Carnival's margin stands at only 11%, providing Royal Caribbean with a stronger capacity for reinvestment and risk management in the competitive landscape.
- Future Growth Expectations: Royal Caribbean anticipates an annualized earnings growth of 20% through 2027, compared to Carnival's plan for a cumulative 50% adjusted earnings growth from 2025 to 2029, highlighting Royal Caribbean's superior profitability and market positioning.
- Stock Performance Discrepancy: Although both companies have shown similar stock performance over the past year, Royal Caribbean's shares surged 309% over the last three years, while Carnival's increased by only 142%, indicating Royal Caribbean's attractiveness for long-term investment returns.
- Market Positioning Strategy: Royal Caribbean focuses on the premium market, investing in new ships and unique destinations, which is expected to expand its customer base, while Carnival competes aggressively on price to attract a broader audience, a strategy that may drive volume but could compromise long-term profitability compared to Royal Caribbean.
See More
Norwegian Cruise Line's Poor Performance Leads to Stock Decline
- Disappointing Earnings Report: Norwegian Cruise Line's fourth-quarter revenue rose 6% to $2.2 billion, driven by higher capacity days, yet fell short of the $2.34 billion estimate, indicating management execution gaps that led to decreased market confidence.
- Significant Stock Decline: The stock plummeted 24% last month due to disappointing earnings and geopolitical instability from the Iran war, reflecting investor concerns about the company's future prospects amidst rising oil prices.
- Improved Profitability: Despite missing revenue expectations, adjusted EBITDA increased by 11% to $2.73 billion, and adjusted earnings per share surged 46% to $0.28, demonstrating effective cost control, yet failing to reverse the overall negative trend.
- Board Changes: Following pressure from activist investor Elliott Investment Management, Norwegian has appointed five new board members, which, while not immediately boosting stock prices, may lay the groundwork for future strategic adjustments and improvements.
See More
Norwegian Cruise Line Misses Q4 Revenue Estimates
- Revenue Miss: Norwegian Cruise Line's Q4 revenue rose 6% to $2.2 billion, falling short of the $2.34 billion estimate, as higher capacity days contributed to growth but execution gaps significantly impacted performance.
- Profitability Improvement: Adjusted EBITDA increased by 11% to $2.73 billion, while adjusted earnings per share surged 46% to $0.28, exceeding expectations of $0.27, indicating effective cost management despite revenue challenges.
- Bleak Outlook: The company forecasts flat net yields for 2026, with cruise costs expected to rise by 0.9%, which will pressure profitability; adjusted EPS guidance of $2.38 is below the consensus of $2.60, reflecting ongoing challenges.
- Board Changes: Following pressure from activist investor Elliott Management, Norwegian appointed five new board members, which, while not boosting stock prices immediately, may set the stage for future improvements in governance and performance.
See More
Norwegian Cruise Line Reports Disappointing Earnings, Stock Falls 24%
- Disappointing Earnings Report: Norwegian Cruise Line's fourth-quarter revenue rose 6% to $2.2 billion, falling short of market expectations of $2.34 billion, indicating management execution gaps that have eroded market confidence.
- Improved Profitability: Despite revenue misses, adjusted EBITDA increased by 11% to $2.73 billion, and adjusted earnings per share surged 46% to $0.28, exceeding expectations of $0.27, demonstrating effective cost control measures.
- Bleak Future Outlook: Norwegian anticipates flat net yields for 2026, with adjusted earnings per share projected at $2.38, below the consensus estimate of $2.60, highlighting ongoing fundamental challenges facing the company.
- Investor Attention: Activist investor Elliott Investment Management called for urgent board reforms, resulting in the appointment of five new board members, which, while not boosting stock prices immediately, may lay the groundwork for future improvements.
See More
US Stocks Close Mixed Amid Oil Surge and Economic Data
- Market Fluctuations: The S&P 500 Index closed up 0.11%, while the Dow Jones Industrial Average fell 0.13%, and the Nasdaq 100 Index rose 0.11%, reflecting volatility influenced by surging oil prices and economic data.
- Positive Economic Data: Weekly initial unemployment claims unexpectedly fell by 9,000 to 202,000, indicating a stronger labor market than the anticipated increase to 212,000, which could impact the Fed's interest rate policy.
- Impact of Oil Surge: Crude oil prices soared over 11% due to President Trump's tougher stance on Iran, leading to sharp declines in airline and cruise line stocks, with United Airlines and Carnival both down more than 3%.
- Corporate Developments: SBA Communications surged over 18% as it explores potential acquisition options, while Globalstar rose over 13% amid reports of Amazon's interest in acquiring the company, highlighting market focus on M&A activity.
See More
