Contrasting Royal Caribbean Cruises (NYSE:RCL) & United Parks & Resorts (NYSE:PRKS)

Royal Caribbean Cruises (NYSE:RCL) and United Parks & Resorts (NYSE:PRKS) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Valuation and Earnings

This table compares Royal Caribbean Cruises and United Parks & Resorts”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$16.48 billion	5.00	$2.88 billion	$14.87	20.33
United Parks & Resorts	$1.67 billion	1.18	$227.50 million	$3.27	11.03

Royal Caribbean Cruises has higher revenue and earnings than United Parks & Resorts. United Parks & Resorts 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.

Profitability

This table compares Royal Caribbean Cruises and United Parks & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Caribbean Cruises	23.33%	44.68%	10.36%
United Parks & Resorts	10.83%	-44.47%	6.88%

Institutional and 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, 1.2% of United Parks & Resorts shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Royal Caribbean Cruises has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500. Comparatively, United Parks & Resorts has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Royal Caribbean Cruises and United Parks & Resorts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Caribbean Cruises	0	4	19	1	2.88
United Parks & Resorts	2	7	4	0	2.15

Royal Caribbean Cruises currently has a consensus target price of $324.82, suggesting a potential upside of 7.42%. United Parks & Resorts has a consensus target price of $50.82, suggesting a potential upside of 40.93%. Given United Parks & Resorts’ higher probable upside, analysts plainly believe United Parks & Resorts is more favorable than Royal Caribbean Cruises.

Summary

Royal Caribbean Cruises beats United Parks & Resorts 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 United Parks & Resorts

United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.