Financial Analysis: Norwegian Cruise Line (NYSE:NCLH) and Studio City Ih (NYSE:MSC)

Studio City Ih (NYSE:MSCGet Free Report) and Norwegian Cruise Line (NYSE:NCLHGet Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Valuation & Earnings

This table compares Studio City Ih and Norwegian Cruise Line”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Studio City Ih $639.15 million 1.11 -$105.83 million ($0.34) -9.94
Norwegian Cruise Line $9.48 billion 0.91 $910.26 million $1.36 13.93

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

Insider and Institutional Ownership

69.6% of Norwegian Cruise Line shares are owned by institutional investors. 54.9% of Studio City Ih shares are owned by insiders. Comparatively, 0.4% of Norwegian Cruise Line shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Studio City Ih and Norwegian Cruise Line’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Studio City Ih -9.66% -10.34% -2.17%
Norwegian Cruise Line 6.85% 55.51% 4.31%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Studio City Ih and Norwegian Cruise Line, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Studio City Ih 1 0 0 0 1.00
Norwegian Cruise Line 0 8 13 2 2.74

Norwegian Cruise Line has a consensus target price of $28.05, indicating a potential upside of 48.07%. Given Norwegian Cruise Line’s stronger consensus rating and higher possible upside, analysts plainly believe Norwegian Cruise Line is more favorable than Studio City Ih.

Risk & Volatility

Studio City Ih has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500. Comparatively, Norwegian Cruise Line has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.

Summary

Norwegian Cruise Line beats Studio City Ih on 13 of the 15 factors compared between the two stocks.

About Studio City Ih

(Get Free Report)

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.

About Norwegian Cruise Line

(Get Free Report)

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.

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