Analyzing Norwegian Cruise Line (NYSE:NCLH) and Avolta (OTCMKTS:DUFRY)

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

Insider & Institutional Ownership

69.6% of Norwegian Cruise Line shares are owned by institutional investors. 0.3% of Norwegian Cruise Line shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Avolta and Norwegian Cruise Line, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avolta	0	1	0	1	3.00
Norwegian Cruise Line	0	14	7	2	2.48

Norwegian Cruise Line has a consensus price target of $21.60, indicating a potential upside of 11.43%. Given Norwegian Cruise Line’s higher probable upside, analysts plainly believe Norwegian Cruise Line is more favorable than Avolta.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avolta	N/A	N/A	N/A
Norwegian Cruise Line	5.66%	47.84%	4.46%

Volatility & Risk

Avolta has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Norwegian Cruise Line has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.

Valuation and Earnings

This table compares Avolta and Norwegian Cruise Line”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avolta	$16.60 billion	0.48	$240.19 million	N/A	N/A
Norwegian Cruise Line	$9.83 billion	0.91	$423.25 million	$1.19	16.29

Norwegian Cruise Line has lower revenue, but higher earnings than Avolta.

Summary

Norwegian Cruise Line beats Avolta on 11 of the 13 factors compared between the two stocks.

About Avolta

Avolta AG operates as a travel retailer. The company’s retail brands include general travel retail shops under the Dufry, World Duty Free, Nuance, Hellenic Duty Free, Zurich Duty-Free or Stockholm Duty-Free, Autogrill, and HMSHost brands; Dufry shopping stores; brand boutiques; convenience stores primarily under the Hudson brand; and specialized shops and theme stores. It offers perfumes and cosmetics, food and confectionery, wines and spirits, watches and jewelry, fashion and leather, tobacco goods, souvenirs, electronics, soft drinks, packaged food, travel accessories, personal items, sunglasses, destination, and other products, as well as newspapers, magazines, and books. It operates duty-free and duty-paid shops located at airports, border, downtown and hotel shops, railway stations and other, cruise liners and ferries, seaports, and motorways in Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific. The company was formerly known as Dufry AG and changed its name to Avolta AG in November 2023. Avolta AG was incorporated in 1865 and is headquartered in Basel, Switzerland.

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.