Life Time Group (NYSE:LTH – Get Free Report) and Royal Caribbean Cruises (NYSE:RCL – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Risk & Volatility
Life Time Group has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Royal Caribbean Cruises has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.
Insider & Institutional Ownership
79.4% of Life Time Group shares are held by institutional investors. Comparatively, 87.5% of Royal Caribbean Cruises shares are held by institutional investors. 8.7% of Life Time Group shares are held by insiders. Comparatively, 7.0% of Royal Caribbean Cruises shares are held by 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Life Time Group | 0 | 6 | 10 | 0 | 2.63 |
| Royal Caribbean Cruises | 0 | 4 | 20 | 1 | 2.88 |
Life Time Group presently has a consensus price target of $37.00, indicating a potential upside of 35.08%. Royal Caribbean Cruises has a consensus price target of $326.27, indicating a potential upside of 11.92%. Given Life Time Group’s higher probable upside, equities analysts clearly believe Life Time Group is more favorable than Royal Caribbean Cruises.
Profitability
This table compares Life Time Group and Royal Caribbean Cruises’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Life Time Group | 9.91% | 9.75% | 3.65% |
| Royal Caribbean Cruises | 23.33% | 44.68% | 10.36% |
Earnings and Valuation
This table compares Life Time Group and Royal Caribbean Cruises”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Life Time Group | $2.62 billion | 2.30 | $156.24 million | $1.29 | 21.23 |
| Royal Caribbean Cruises | $16.48 billion | 4.82 | $2.88 billion | $14.87 | 19.60 |
Royal Caribbean Cruises has higher revenue and earnings than Life Time Group. Royal Caribbean Cruises is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.
Summary
Royal Caribbean Cruises beats Life Time Group on 12 of the 15 factors compared between the two stocks.
About Life Time Group
Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.
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.
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