Norwegian Cruise Line (NYSE:NCLH – Get Free Report) and Studio City Ih (NYSE:MSC – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
69.6% of Norwegian Cruise Line shares are held by institutional investors. 0.4% of Norwegian Cruise Line shares are held by insiders. Comparatively, 54.9% of Studio City Ih shares are held by 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.
Volatility and Risk
Norwegian Cruise Line has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Studio City Ih has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Norwegian Cruise Line | $9.48 billion | 0.92 | $910.26 million | $1.36 | 14.03 |
| Studio City Ih | $639.15 million | 1.15 | -$105.83 million | ($0.34) | -10.28 |
Norwegian Cruise Line has higher revenue and earnings than Studio City Ih. Studio City Ih 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.
Profitability
This table compares Norwegian Cruise Line and Studio City Ih’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Norwegian Cruise Line | 6.85% | 55.51% | 4.31% |
| Studio City Ih | -9.66% | -10.34% | -2.17% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Norwegian Cruise Line and Studio City Ih, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Norwegian Cruise Line | 0 | 8 | 13 | 2 | 2.74 |
| Studio City Ih | 1 | 0 | 0 | 0 | 1.00 |
Norwegian Cruise Line presently has a consensus price target of $28.05, indicating a potential upside of 47.03%. Given Norwegian Cruise Line’s stronger consensus rating and higher possible upside, research analysts plainly believe Norwegian Cruise Line is more favorable than Studio City Ih.
Summary
Norwegian Cruise Line beats Studio City Ih on 13 of the 15 factors compared between the two stocks.
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.
About Studio City Ih
Studio City International Holdings Limited operates an entertainment resort in Macau. It operates Studio City Casino, comprising gaming tables, including tables for VIP rolling chip operations and gaming machines; and resort, which offers various non-gaming attractions, including figure-8 ferris wheel, night club and karaoke venue, live performance arena, and an outdoor and indoor water park, as well as hotel rooms and various food and beverage establishments, and retail space. The company was formerly known as Cyber One Agents Limited and changed its name to Studio City International Holdings Limited in January 2012. The company was founded in 2000 and is based in Central, Hong Kong. Studio City International Holdings Limited is a subsidiary of MCO Cotai Investments Limited.
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