Financial Contrast: Norwegian Cruise Line (NYSE:NCLH) and H.I.S. (OTCMKTS:HISJF)

H.I.S. (OTCMKTS:HISJF) and Norwegian Cruise Line (NYSE:NCLH) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Earnings and Valuation

This table compares H.I.S. and Norwegian Cruise Line”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H.I.S.	$2.50 billion	0.39	$31.63 million	$0.40	32.73
Norwegian Cruise Line	$9.48 billion	1.10	$910.26 million	$1.36	16.78

Norwegian Cruise Line has higher revenue and earnings than H.I.S.. Norwegian Cruise Line is trading at a lower price-to-earnings ratio than H.I.S., indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
H.I.S.	1.22%	13.91%	2.25%
Norwegian Cruise Line	6.85%	55.51%	4.31%

Analyst Ratings

This is a breakdown of current recommendations for H.I.S. and Norwegian Cruise Line, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H.I.S.	0	0	0	0	0.00
Norwegian Cruise Line	0	10	11	2	2.65

Norwegian Cruise Line has a consensus target price of $27.37, indicating a potential upside of 19.91%. Given Norwegian Cruise Line’s stronger consensus rating and higher probable upside, analysts clearly believe Norwegian Cruise Line is more favorable than H.I.S..

Risk and Volatility

H.I.S. has a beta of -0.24, indicating that its share price is 124% less volatile than the S&P 500. Comparatively, Norwegian Cruise Line has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500.

Institutional & Insider Ownership

69.6% of Norwegian Cruise Line shares are held by institutional investors. 0.4% of Norwegian Cruise Line shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Norwegian Cruise Line beats H.I.S. on 14 of the 15 factors compared between the two stocks.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.

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.