Intergroup (NASDAQ:INTG) versus Royal Caribbean Cruises (NYSE:RCL) Critical Analysis

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

Valuation and Earnings

This table compares Royal Caribbean Cruises and Intergroup”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$17.93 billion	4.22	$4.27 billion	$16.18	17.49
Intergroup	$73.95 million	0.90	$1.64 million	$0.71	43.72

Royal Caribbean Cruises has higher revenue and earnings than Intergroup. Royal Caribbean Cruises is trading at a lower price-to-earnings ratio than Intergroup, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Royal Caribbean Cruises has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Intergroup has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Royal Caribbean Cruises	23.54%	43.33%	10.56%
Intergroup	2.22%	-1.43%	1.60%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Royal Caribbean Cruises and Intergroup, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Caribbean Cruises	0	7	15	1	2.74
Intergroup	0	1	0	0	2.00

Royal Caribbean Cruises currently has a consensus target price of $357.65, indicating a potential upside of 26.38%. Given Royal Caribbean Cruises’ stronger consensus rating and higher possible upside, equities analysts clearly believe Royal Caribbean Cruises is more favorable than Intergroup.

Insider and Institutional Ownership

87.5% of Royal Caribbean Cruises shares are owned by institutional investors. Comparatively, 3.4% of Intergroup shares are owned by institutional investors. 6.4% of Royal Caribbean Cruises shares are owned by insiders. Comparatively, 73.8% of Intergroup shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Royal Caribbean Cruises beats Intergroup on 13 of the 15 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 Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.