Norwegian Cruise Line (NCLH) and The Competition Financial Analysis

Norwegian Cruise Line (NASDAQ:NCLH – Get Rating) is one of 30 publicly-traded companies in the “Water transportation” industry, but how does it weigh in compared to its peers? We will compare Norwegian Cruise Line to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings and Valuation

This table compares Norwegian Cruise Line and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Norwegian Cruise Line	$4.84 billion	-$2.27 billion	-2.60
Norwegian Cruise Line Competitors	$2.82 billion	-$689.72 million	13.09

Norwegian Cruise Line has higher revenue, but lower earnings than its peers. Norwegian Cruise Line is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Norwegian Cruise Line and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norwegian Cruise Line	-46.86%	-286.66%	-10.87%
Norwegian Cruise Line Competitors	14.12%	-14.81%	2.95%

Volatility & Risk

Norwegian Cruise Line has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500. Comparatively, Norwegian Cruise Line’s peers have a beta of 1.41, indicating that their average share price is 41% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Norwegian Cruise Line and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norwegian Cruise Line	0	0	0	0	N/A
Norwegian Cruise Line Competitors	298	1153	1860	33	2.49

As a group, “Water transportation” companies have a potential upside of 44.63%. Given Norwegian Cruise Line’s peers higher probable upside, analysts clearly believe Norwegian Cruise Line has less favorable growth aspects than its peers.

Insider and Institutional Ownership

57.2% of Norwegian Cruise Line shares are owned by institutional investors. Comparatively, 53.8% of shares of all “Water transportation” companies are owned by institutional investors. 0.8% of Norwegian Cruise Line shares are owned by company insiders. Comparatively, 6.4% of shares of all “Water transportation” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Norwegian Cruise Line peers beat Norwegian Cruise Line on 7 of the 10 factors compared.

Norwegian Cruise Line Company Profile

(Get Rating)

Norwegian Cruise Line Holdings Ltd. engages in the provision of cruise travel services. It provides cruise experiences for travelers with itineraries in Europe, Asia, Australia, New Zealand, South America, Africa, Canada, Bermuda, Caribbean, Alaska and Hawaii. It also offers an entirely inter-island itinerary in Hawaii. Its brands include Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. The company was founded in 1966 and is headquartered in Miami, FL.