Head to Head Survey: Marcus (NYSE:MCS) & Norwegian Cruise Line (NYSE:NCLH)

Marcus (NYSE:MCS) and Norwegian Cruise Line (NYSE:NCLH) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Marcus and Norwegian Cruise Line, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus	0	2	4	0	2.67
Norwegian Cruise Line	0	11	10	2	2.61

Marcus presently has a consensus price target of $23.50, suggesting a potential upside of 18.64%. Norwegian Cruise Line has a consensus price target of $24.63, suggesting a potential upside of 17.55%. Given Marcus’ stronger consensus rating and higher possible upside, research analysts plainly believe Marcus is more favorable than Norwegian Cruise Line.

Profitability

This table compares Marcus and Norwegian Cruise Line’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marcus	1.67%	0.46%	0.21%
Norwegian Cruise Line	4.31%	50.05%	4.22%

Risk and Volatility

Marcus has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Norwegian Cruise Line has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500.

Valuation & Earnings

This table compares Marcus and Norwegian Cruise Line”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marcus	$758.46 million	0.80	$12.69 million	$0.40	49.52
Norwegian Cruise Line	$9.83 billion	0.97	$423.25 million	$0.87	24.09

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

Insider and Institutional Ownership

81.6% of Marcus shares are held by institutional investors. Comparatively, 69.6% of Norwegian Cruise Line shares are held by institutional investors. 10.4% of Marcus shares are held by insiders. Comparatively, 0.4% of Norwegian Cruise Line shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Norwegian Cruise Line beats Marcus on 10 of the 15 factors compared between the two stocks.

About Marcus

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.

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.