Comparing Royal Caribbean Cruises (NYSE:RCL) & Lindblad Expeditions (NASDAQ:LIND)

Lindblad Expeditions (NASDAQ:LIND) and Royal Caribbean Cruises (NYSE:RCL) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lindblad Expeditions	-2.86%	N/A	-0.44%
Royal Caribbean Cruises	24.36%	45.25%	11.13%

Valuation & Earnings

This table compares Lindblad Expeditions and Royal Caribbean Cruises”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lindblad Expeditions	$799.31 million	2.43	-$29.72 million	($0.54)	-54.80
Royal Caribbean Cruises	$17.94 billion	4.83	$4.27 billion	$16.39	19.69

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

Institutional and Insider Ownership

75.9% of Lindblad Expeditions shares are held by institutional investors. Comparatively, 87.5% of Royal Caribbean Cruises shares are held by institutional investors. 26.1% of Lindblad Expeditions shares are held by insiders. Comparatively, 6.4% 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 is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Lindblad Expeditions and Royal Caribbean Cruises, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lindblad Expeditions	1	1	4	0	2.50
Royal Caribbean Cruises	0	6	14	1	2.76

Lindblad Expeditions currently has a consensus target price of $24.33, suggesting a potential downside of 17.77%. Royal Caribbean Cruises has a consensus target price of $345.58, suggesting a potential upside of 7.07%. Given Royal Caribbean Cruises’ stronger consensus rating and higher possible upside, analysts clearly believe Royal Caribbean Cruises is more favorable than Lindblad Expeditions.

Risk & Volatility

Lindblad Expeditions has a beta of 2.26, indicating that its share price is 126% more volatile than the S&P 500. Comparatively, Royal Caribbean Cruises has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Summary

Royal Caribbean Cruises beats Lindblad Expeditions on 13 of the 15 factors compared between the two stocks.

About Lindblad Expeditions

Lindblad Expeditions Holdings, Inc. provides marine expedition adventures and travel experience worldwide. It operates through Lindblad and Land Experiences segment. Lindblad segment provides ship-based expeditions aboard customized, nimble, and intimately-scaled vessels, which offers up-close experiences in the planet's wild and remote places, and capitals of culture; and offers expedition ship which is equipped with state-of-the-art tools for in-depth exploration with infrastructure and ports, such as Antarctica and the Arctic, and places that accessed by a ship comprising Galápagos Islands, Alaska, Baja California's Sea of Cortez and Panama, and foster engagement activities. The Land Experiences segment comprises natural habitats, which provides over 100 different expedition itineraries in more than 45 countries across seven continents, with eco-conscious expeditions and nature-focused, and small-group tours including polar bear tours and bear adventure; and DuVine provides intimate group cycling and adventure tours around the world with local cycling experts as guides in local cultural, cuisine, and accommodations. This segment also offers off the beaten path including small group travel, led by local, and experienced guides with focus on wildlife, hiking national parks, and culture; and classical journey, a curated active small-group and private custom journeys centered around cinematic walks led by expert local guides over 50 countries across the world. In addition, it has an alliance with National Geographic Partners, LLC, which provides lecturers and National Geographic experts including photographers, marine biologists, writers, naturalists, field researchers, and film crews; and partnered with World Wildlife Fund to offer conservation travel. Lindblad Expeditions Holdings, Inc. was founded in 1979 and is headquartered in New York, New York.

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.