Royal Caribbean Cruises (NYSE:RCL – Get Free Report) and Studio City Ih (NYSE:MSC – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Profitability
This table compares Royal Caribbean Cruises and Studio City Ih’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Royal Caribbean Cruises | 23.80% | 45.06% | 10.87% |
| Studio City Ih | -8.51% | -9.60% | -1.99% |
Institutional & Insider Ownership
87.5% of Royal Caribbean Cruises shares are held by institutional investors. 7.0% of Royal Caribbean Cruises 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 company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Royal Caribbean Cruises | $17.94 billion | 4.13 | $4.27 billion | $15.61 | 17.55 |
| Studio City Ih | $694.57 million | 0.86 | -$64.30 million | ($0.31) | -9.19 |
Royal Caribbean Cruises has higher revenue and earnings than Studio City Ih. Studio City Ih is trading at a lower price-to-earnings ratio than Royal Caribbean Cruises, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Royal Caribbean Cruises has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Studio City Ih has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Royal Caribbean Cruises and Studio City Ih, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Royal Caribbean Cruises | 0 | 4 | 17 | 1 | 2.86 |
| Studio City Ih | 1 | 0 | 0 | 0 | 1.00 |
Royal Caribbean Cruises presently has a consensus target price of $353.30, suggesting a potential upside of 28.99%. Given Royal Caribbean Cruises’ stronger consensus rating and higher possible upside, equities analysts plainly believe Royal Caribbean Cruises is more favorable than Studio City Ih.
Summary
Royal Caribbean Cruises beats Studio City Ih on 14 of the 15 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 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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