Flight Centre (OTCMKTS:FGETF) & Royal Caribbean Cruises (NYSE:RCL) Head-To-Head Analysis

Royal Caribbean Cruises (NYSE:RCL) and Flight Centre (OTCMKTS:FGETF) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Risk & Volatility

Royal Caribbean Cruises has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Flight Centre has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Royal Caribbean Cruises and Flight Centre, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Caribbean Cruises	0	4	19	1	2.88
Flight Centre	0	0	1	1	3.50

Royal Caribbean Cruises currently has a consensus price target of $326.09, suggesting a potential upside of 22.62%. Given Royal Caribbean Cruises’ higher probable upside, analysts clearly believe Royal Caribbean Cruises is more favorable than Flight Centre.

Earnings & Valuation

This table compares Royal Caribbean Cruises and Flight Centre”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$17.44 billion	4.16	$2.88 billion	$14.87	17.88
Flight Centre	$1.80 billion	0.99	$70.90 million	N/A	N/A

Royal Caribbean Cruises has higher revenue and earnings than Flight Centre.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Royal Caribbean Cruises	23.33%	44.68%	10.36%
Flight Centre	N/A	N/A	N/A

Insider and Institutional 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Royal Caribbean Cruises beats Flight Centre on 11 of the 12 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 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

About Flight Centre

Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets. It also provides tour operations, hotel management, and destination management services. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, and cievents. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. The company was incorporated in 1987 and is headquartered in South Brisbane, Australia.