Head-To-Head Comparison: Sonder (NASDAQ:SOND) & Carnival (NYSE:CUK)

Carnival (NYSE:CUK) and Sonder (NASDAQ:SOND) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Carnival and Sonder’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carnival	10.07%	27.86%	5.64%
Sonder	-42.27%	N/A	-22.67%

Analyst Ratings

This is a summary of recent ratings and price targets for Carnival and Sonder, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carnival	0	1	0	0	2.00
Sonder	1	0	0	0	1.00

Insider and Institutional Ownership

23.8% of Carnival shares are held by institutional investors. Comparatively, 45.9% of Sonder shares are held by institutional investors. 0.1% of Carnival shares are held by company insiders. Comparatively, 3.8% of Sonder shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Carnival has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500. Comparatively, Sonder has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Valuation and Earnings

This table compares Carnival and Sonder”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carnival	$26.23 billion	0.17	$1.92 billion	$1.92	12.00
Sonder	$621.27 million	0.00	-$224.09 million	($22.08)	-0.01

Carnival has higher revenue and earnings than Sonder. Sonder is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.

Summary

Carnival beats Sonder on 10 of the 12 factors compared between the two stocks.

About Carnival

Carnival Plc operates as a global cruise and vacation company. The firm offers holiday and vacation products to a customer base that is broadly varied in terms of cultures, languages and leisure-time preferences. It operates through the North America and Australia (NAA), Europe and Asia (EA), Cruise Support, and Tour and Other segments. The NAA segment includes Carnival Cruise Line, Holland America Line, P and O Cruises (Australia), Princess and Seabourn. The EA segment includes AIDA, Costa, Cunard, and P and O Cruises (UK). The Cruise Support segment includes a portfolio of port destinations and other services, all of which are operated for the benefit of cruise brands. The Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. The company was founded on July 19, 2000 and is headquartered in Southampton, the United Kingdom.

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.