Comparing Avolta (OTCMKTS:DUFRY) & Royal Caribbean Cruises (NYSE:RCL)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Avolta and Royal Caribbean Cruises, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avolta	0	0	0	1	4.00
Royal Caribbean Cruises	0	4	18	1	2.87

Royal Caribbean Cruises has a consensus target price of $326.95, indicating a potential upside of 0.14%. Given Royal Caribbean Cruises’ higher probable upside, analysts plainly believe Royal Caribbean Cruises is more favorable than Avolta.

Volatility and Risk

Avolta has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Royal Caribbean Cruises has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500.

Institutional and Insider Ownership

87.5% of Royal Caribbean Cruises shares are owned by institutional investors. 7.0% of Royal Caribbean Cruises shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avolta	$15.33 billion	0.53	$117.00 million	N/A	N/A
Royal Caribbean Cruises	$16.48 billion	5.38	$2.88 billion	$13.34	24.48

Royal Caribbean Cruises has higher revenue and earnings than Avolta.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avolta	N/A	N/A	N/A
Royal Caribbean Cruises	20.97%	47.15%	10.19%

Summary

Royal Caribbean Cruises beats Avolta on 11 of the 12 factors compared between the two stocks.

About Avolta

Avolta AG operates as a travel retailer. The company’s retail brands include general travel retail shops under the Dufry, World Duty Free, Nuance, Hellenic Duty Free, Zurich Duty-Free or Stockholm Duty-Free, Autogrill, and HMSHost brands; Dufry shopping stores; brand boutiques; convenience stores primarily under the Hudson brand; and specialized shops and theme stores. It offers perfumes and cosmetics, food and confectionery, wines and spirits, watches and jewelry, fashion and leather, tobacco goods, souvenirs, electronics, soft drinks, packaged food, travel accessories, personal items, sunglasses, destination, and other products, as well as newspapers, magazines, and books. It operates duty-free and duty-paid shops located at airports, border, downtown and hotel shops, railway stations and other, cruise liners and ferries, seaports, and motorways in Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific. The company was formerly known as Dufry AG and changed its name to Avolta AG in November 2023. Avolta AG was incorporated in 1865 and is headquartered in Basel, Switzerland.

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.