Comparing Royal Caribbean Cruises (NYSE:RCL) & Life Time Group (NYSE:LTH)

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

Insider and Institutional Ownership

79.4% of Life Time Group shares are owned by institutional investors. Comparatively, 87.5% of Royal Caribbean Cruises shares are owned by institutional investors. 8.7% of Life Time Group shares are owned by company insiders. Comparatively, 7.0% of Royal Caribbean Cruises shares are owned by company 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 Life Time Group and Royal Caribbean Cruises”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Life Time Group	$2.62 billion	2.39	$156.24 million	$1.29	22.05
Royal Caribbean Cruises	$16.48 billion	5.15	$2.88 billion	$14.87	20.94

Royal Caribbean Cruises has higher revenue and earnings than Life Time Group. Royal Caribbean Cruises is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Life Time Group and Royal Caribbean Cruises, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life Time Group	0	6	10	0	2.63
Royal Caribbean Cruises	0	4	19	1	2.88

Life Time Group currently has a consensus target price of $37.00, suggesting a potential upside of 30.10%. Royal Caribbean Cruises has a consensus target price of $324.82, suggesting a potential upside of 4.30%. Given Life Time Group’s higher possible upside, analysts plainly believe Life Time Group is more favorable than Royal Caribbean Cruises.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Life Time Group	9.91%	9.75%	3.65%
Royal Caribbean Cruises	23.33%	44.68%	10.36%

Risk and Volatility

Life Time Group has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Royal Caribbean Cruises has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.

Summary

Royal Caribbean Cruises beats Life Time Group on 12 of the 15 factors compared between the two stocks.

About Life Time Group

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.

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.