Comparing Royal Caribbean Cruises (NYSE:RCL) & Cool (NYSE:CLCO)

Royal Caribbean Cruises (NYSE:RCL) and Cool (NYSE:CLCO) are both consumer cyclical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Royal Caribbean Cruises	6.98%	34.59%	3.67%
Cool	N/A	N/A	N/A

Valuation and Earnings

This table compares Royal Caribbean Cruises and Cool’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$8.84 billion	3.06	-$2.16 billion	$3.20	32.98
Cool	$190.69 million	2.80	$85.74 million	$2.37	5.64

Cool has lower revenue, but higher earnings than Royal Caribbean Cruises. Cool 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Caribbean Cruises	0	3	10	0	2.77
Cool	0	0	1	0	3.00

Royal Caribbean Cruises currently has a consensus price target of $111.00, suggesting a potential upside of 5.17%. Given Royal Caribbean Cruises’ higher possible upside, equities analysts clearly believe Royal Caribbean Cruises is more favorable than Cool.

Insider and Institutional Ownership

75.6% of Royal Caribbean Cruises shares are owned by institutional investors. Comparatively, 20.7% of Cool shares are owned by institutional investors. 8.7% of Royal Caribbean Cruises shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Royal Caribbean Cruises beats Cool on 11 of the 13 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 13, 2023, it operated 64 ships. The company was founded in 1968 and is headquartered in Miami, Florida.

About Cool

Cool Company Ltd. engages in the ownership, operation, and management of liquefied natural gas carriers (LNGCs) that provides supply chain support solutions for energy industry. The company owns and operates a fleet of LNGCs, including tri-fuel diesel electric vessels; and floating storage and regasification units for third parties. Cool Company Ltd. was incorporated in 2018 and is headquartered in Hamilton, Bermuda.