Critical Contrast: Carnival (CCL) vs. Its Rivals

Carnival (NYSE: CCL) is one of 24 publicly-traded companies in the “Water transportation” industry, but how does it compare to its competitors? We will compare Carnival to similar companies based on the strength of its institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Analyst Recommendations

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This is a summary of current ratings for Carnival and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carnival 0 6 15 0 2.71
Carnival Competitors 234 772 1136 37 2.45

Carnival presently has a consensus target price of $74.89, suggesting a potential upside of 16.71%. As a group, “Water transportation” companies have a potential upside of 13.62%. Given Carnival’s stronger consensus rating and higher probable upside, analysts plainly believe Carnival is more favorable than its competitors.

Institutional & Insider Ownership

76.7% of Carnival shares are owned by institutional investors. Comparatively, 64.1% of shares of all “Water transportation” companies are owned by institutional investors. 23.8% of Carnival shares are owned by company insiders. Comparatively, 6.0% of shares of all “Water transportation” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Carnival and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carnival 14.73% 11.97% 7.01%
Carnival Competitors -0.68% 4.01% 1.63%

Risk and Volatility

Carnival has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Carnival’s competitors have a beta of 1.16, indicating that their average stock price is 16% more volatile than the S&P 500.

Dividends

Carnival pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Carnival pays out 20.9% of its earnings in the form of a dividend. As a group, “Water transportation” companies pay a dividend yield of 4.1% and pay out 74.6% of their earnings in the form of a dividend. Carnival has raised its dividend for 3 consecutive years.

Valuation and Earnings

This table compares Carnival and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Carnival $17.51 billion $2.61 billion 16.80
Carnival Competitors $2.48 billion $323.23 million -1.91

Carnival has higher revenue and earnings than its competitors. Carnival is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Carnival beats its competitors on 12 of the 15 factors compared.

Carnival Company Profile

Carnival Corporation is a leisure travel company. The Company is a cruise company of global cruise guests, and a provider of vacations to all cruise destinations throughout the world. The Company operates in four segments: North America, EAA, Cruise Support and, Tour and Other. The Company’s North America segment includes Carnival Cruise Line, Holland America Line, Princess Cruises (Princess) and Seabourn. The Company’s Cruise Support segment represents certain of its port and related facilities and other services that are provided for the benefit of its cruise brands and Fathom’s selling, general and administrative expenses. Its EAA segment includes AIDA Cruises (AIDA), Costa Cruises (Costa), Cunard, P&O Cruises (Australia), P&O Cruises (the United Kingdom) and ship operations of Fathom. Its Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and three ships that the Company bareboat charter to unaffiliated entities.

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