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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$16.48 billion	4.98	$2.88 billion	$14.87	20.24
United Parks & Resorts	$1.73 billion	1.18	$227.50 million	$3.27	11.46

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.

Insider and Institutional 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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%

Analyst Recommendations

This is a summary of recent ratings and recommmendations 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 presently has a consensus price target of $323.68, suggesting a potential upside of 7.54%. United Parks & Resorts has a consensus price target of $50.82, suggesting a potential upside of 35.65%. Given United Parks & Resorts’ higher probable upside, analysts clearly believe United Parks & Resorts is more favorable than Royal Caribbean Cruises.

Volatility and Risk

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

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.