Norwegian Cruise Line (NYSE:NCLH – Get Free Report) and Monarch Casino & Resort (NASDAQ:MCRI – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Volatility and Risk
Norwegian Cruise Line has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Monarch Casino & Resort has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
Profitability
This table compares Norwegian Cruise Line and Monarch Casino & Resort’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Norwegian Cruise Line | 7.49% | 41.38% | 4.21% |
| Monarch Casino & Resort | 20.40% | 20.63% | 15.79% |
Insider & Institutional Ownership
69.6% of Norwegian Cruise Line shares are held by institutional investors. Comparatively, 62.4% of Monarch Casino & Resort shares are held by institutional investors. 0.3% of Norwegian Cruise Line shares are held by company insiders. Comparatively, 26.3% of Monarch Casino & Resort 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.
Analyst Ratings
This is a summary of recent ratings for Norwegian Cruise Line and Monarch Casino & Resort, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Norwegian Cruise Line | 1 | 15 | 5 | 2 | 2.35 |
| Monarch Casino & Resort | 0 | 4 | 2 | 1 | 2.57 |
Norwegian Cruise Line presently has a consensus price target of $20.25, indicating a potential upside of 31.24%. Monarch Casino & Resort has a consensus price target of $124.40, indicating a potential upside of 8.94%. Given Norwegian Cruise Line’s higher probable upside, analysts plainly believe Norwegian Cruise Line is more favorable than Monarch Casino & Resort.
Earnings and Valuation
This table compares Norwegian Cruise Line and Monarch Casino & Resort”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Norwegian Cruise Line | $9.83 billion | 0.72 | $423.25 million | $1.60 | 9.64 |
| Monarch Casino & Resort | $561.96 million | 3.64 | $101.39 million | $6.24 | 18.30 |
Norwegian Cruise Line has higher revenue and earnings than Monarch Casino & Resort. Norwegian Cruise Line is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.
Summary
Norwegian Cruise Line beats Monarch Casino & Resort on 8 of the 15 factors compared between the two stocks.
About Norwegian Cruise Line
Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various ports, including Scandinavia, Northern Europe, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. It distributes its products through retail/travel advisor and onboard cruise sales channels, as well as meetings, incentives, and charters. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida.
About Monarch Casino & Resort
Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.
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