Norwegian Cruise Line (NYSE:NCLH – Get Free Report) and TUI (OTCMKTS:TUIFF – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Valuation and Earnings
This table compares Norwegian Cruise Line and TUI’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Norwegian Cruise Line||$4.84 billion||1.51||-$2.27 billion||($2.02)||-8.53|
TUI has lower revenue, but higher earnings than Norwegian Cruise Line. Norwegian Cruise Line is trading at a lower price-to-earnings ratio than TUI, indicating that it is currently the more affordable of the two stocks.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Norwegian Cruise Line||2||7||4||1||2.29|
Norwegian Cruise Line presently has a consensus price target of $19.70, suggesting a potential upside of 14.34%. Given Norwegian Cruise Line’s higher probable upside, research analysts plainly believe Norwegian Cruise Line is more favorable than TUI.
This table compares Norwegian Cruise Line and TUI’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Norwegian Cruise Line||-11.88%||-863.25%||-4.45%|
Insider & Institutional Ownership
60.5% of Norwegian Cruise Line shares are held by institutional investors. Comparatively, 13.6% of TUI shares are held by institutional investors. 0.9% of Norwegian Cruise Line shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
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 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 locations, including destinations in Scandinavia, Russia, 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. The company was founded in 1966 and is based in Miami, Florida.
TUI AG, together with its subsidiaries, provides tourism services worldwide. It operates hotels and resorts under the Robinson, Riu, TUI Blue, Blue Diamond, TUI Suneo, and TUI Magic Life brands. The company is also involved in the tour operation and airlines businesses. In addition, it operates cruise liners under the Mein Schiff, Hapag-Lloyd Cruises, and Marella brands. The company operates 1,600 travel agencies and online portals; 134 aircraft; and 16 cruise liners, as well as 418 hotels. The company was formerly known as Preussag AG and changed its name to TUI AG in June 2002. TUI AG is headquartered in Hanover, Germany.
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