Norwegian Cruise Line (NYSE:NCLH) and Höegh LNG Partners (NYSE:HMLP) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Valuation & Earnings

This table compares Norwegian Cruise Line and Höegh LNG Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Norwegian Cruise Line $6.46 billion 0.85 $930.23 million $5.09 3.93
Höegh LNG Partners $145.44 million 3.12 $52.74 million $2.09 6.54

Norwegian Cruise Line has higher revenue and earnings than Höegh LNG Partners. Norwegian Cruise Line is trading at a lower price-to-earnings ratio than Höegh LNG Partners, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Norwegian Cruise Line has a beta of 2.75, meaning that its share price is 175% more volatile than the S&P 500. Comparatively, Höegh LNG Partners has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.

Profitability

This table compares Norwegian Cruise Line and Höegh LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Norwegian Cruise Line -43.46% -4.47% -1.44%
Höegh LNG Partners 39.28% 20.11% 6.51%

Insider & Institutional Ownership

47.5% of Norwegian Cruise Line shares are held by institutional investors. Comparatively, 21.7% of Höegh LNG Partners shares are held by institutional investors. 1.3% of Norwegian Cruise Line shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Norwegian Cruise Line and Höegh LNG Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Norwegian Cruise Line 1 0 2 0 2.33
Höegh LNG Partners 1 2 2 0 2.20

Norwegian Cruise Line presently has a consensus price target of $19.67, indicating a potential downside of 1.62%. Höegh LNG Partners has a consensus price target of $14.33, indicating a potential upside of 4.93%. Given Höegh LNG Partners’ higher probable upside, analysts plainly believe Höegh LNG Partners is more favorable than Norwegian Cruise Line.

Summary

Norwegian Cruise Line beats Höegh LNG Partners on 7 of the 13 factors compared between the two stocks.

Norwegian Cruise Line Company Profile

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in the North America, Europe, the Asia-Pacific, and internationally. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers cruise itineraries ranging from a few days to 180-days calling on various locations, including destinations in Scandinavia, Russia, the Mediterranean, the Greek Isles, Alaska, Canada and New England, India and the rest of Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, South America, the Panama Canal, the Caribbean, and Harvest Caye. As of February 20, 2020, the company had 28 ships with approximately 59,150 berths. It distributes its products through retail/travel advisor, international travel advisor, and onboard cruise sales channels, as well as meetings, incentives, and charters. The company was founded in 1966 and is headquartered in Miami, Florida.

Höegh LNG Partners Company Profile

Höegh LNG Partners LP focuses on owning, operating, and acquiring floating storage and regasification units (FSRUs), liquefied natural gas (LNG) carriers, and other LNG infrastructure assets under long-term charters. The company also offers ship management services. As of March 31, 2019, it had a fleet of five FSRUs. Höegh LNG GP LLC is the general partner of the company. The company was founded in 2014 and is headquartered in Hamilton, Bermuda. Höegh LNG Partners LP is a subsidiary of Höegh LNG Holdings Ltd.

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