Sonder (NASDAQ:SOND – Get Free Report) and Norwegian Cruise Line (NYSE:NCLH – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Insider and Institutional Ownership
45.9% of Sonder shares are owned by institutional investors. Comparatively, 69.6% of Norwegian Cruise Line shares are owned by institutional investors. 3.8% of Sonder shares are owned by company insiders. Comparatively, 0.4% of Norwegian Cruise Line shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Sonder and Norwegian Cruise Line”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonder | $621.27 million | 0.02 | -$224.09 million | ($22.08) | -0.04 |
| Norwegian Cruise Line | $9.56 billion | 1.06 | $910.26 million | $1.45 | 15.48 |
Norwegian Cruise Line has higher revenue and earnings than Sonder. Sonder is trading at a lower price-to-earnings ratio than Norwegian Cruise Line, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Sonder and Norwegian Cruise Line, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonder | 1 | 0 | 0 | 0 | 1.00 |
| Norwegian Cruise Line | 0 | 8 | 12 | 3 | 2.78 |
Norwegian Cruise Line has a consensus price target of $28.00, indicating a potential upside of 24.78%. Given Norwegian Cruise Line’s stronger consensus rating and higher probable upside, analysts clearly believe Norwegian Cruise Line is more favorable than Sonder.
Profitability
This table compares Sonder and Norwegian Cruise Line’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonder | -42.27% | N/A | -22.67% |
| Norwegian Cruise Line | 7.52% | 59.88% | 4.02% |
Risk & Volatility
Sonder has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Norwegian Cruise Line has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500.
Summary
Norwegian Cruise Line beats Sonder on 14 of the 15 factors compared between the two stocks.
About Sonder
Sonder Holdings Inc. engages in the hospitality business. It operates and manages properties comprising 1-, 2-, and 3+ bedroom; and studio apartments, as well as 1-bedroom hotel rooms for leisure travelers and families, digital nomads, and business travelers in North America, Europe, and the Middle East. The company is headquartered in San Francisco, California.
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.
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