Flight Centre (OTCMKTS:FGETF) versus Royal Caribbean Cruises (NYSE:RCL) Financial Survey

Royal Caribbean Cruises (NYSE:RCL) and Flight Centre (OTCMKTS:FGETF) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Royal Caribbean Cruises and Flight Centre, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Caribbean Cruises	0	4	19	1	2.88
Flight Centre	0	0	1	1	3.50

Royal Caribbean Cruises currently has a consensus target price of $326.64, suggesting a potential upside of 22.45%. Given Royal Caribbean Cruises’ higher possible upside, equities research analysts clearly believe Royal Caribbean Cruises is more favorable than Flight Centre.

Institutional and Insider Ownership

87.5% of Royal Caribbean Cruises shares are held by institutional investors. 7.0% of Royal Caribbean Cruises shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Royal Caribbean Cruises and Flight Centre”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$17.44 billion	4.17	$2.88 billion	$14.87	17.94
Flight Centre	$1.80 billion	0.99	$70.90 million	N/A	N/A

Royal Caribbean Cruises has higher revenue and earnings than Flight Centre.

Volatility and Risk

Royal Caribbean Cruises has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, Flight Centre has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500.

Profitability

This table compares Royal Caribbean Cruises and Flight Centre’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Caribbean Cruises	23.33%	44.68%	10.36%
Flight Centre	N/A	N/A	N/A

Summary

Royal Caribbean Cruises beats Flight Centre on 11 of the 12 factors compared between the two stocks.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

About Flight Centre

Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets. It also provides tour operations, hotel management, and destination management services. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, and cievents. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. The company was incorporated in 1987 and is headquartered in South Brisbane, Australia.