Carnival (NYSE:CCL – Get Free Report) and Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
Institutional & Insider Ownership
67.2% of Carnival shares are held by institutional investors. Comparatively, 68.1% of Lucky Strike Entertainment shares are held by institutional investors. 7.9% of Carnival shares are held by company insiders. Comparatively, 84.2% of Lucky Strike Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Carnival and Lucky Strike Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carnival | 0 | 6 | 21 | 0 | 2.78 |
| Lucky Strike Entertainment | 1 | 4 | 4 | 0 | 2.33 |
Volatility & Risk
Carnival has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500. Comparatively, Lucky Strike Entertainment has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.
Valuation and Earnings
This table compares Carnival and Lucky Strike Entertainment”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carnival | $26.98 billion | 1.18 | $2.76 billion | $2.25 | 11.40 |
| Lucky Strike Entertainment | $1.24 billion | 0.96 | -$10.02 million | ($0.65) | -13.25 |
Carnival has higher revenue and earnings than Lucky Strike Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Carnival and Lucky Strike Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carnival | 11.48% | 26.92% | 6.20% |
| Lucky Strike Entertainment | -7.09% | N/A | -2.74% |
Dividends
Carnival pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Lucky Strike Entertainment pays an annual dividend of $0.24 per share and has a dividend yield of 2.8%. Carnival pays out 26.7% of its earnings in the form of a dividend. Lucky Strike Entertainment pays out -36.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lucky Strike Entertainment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Carnival beats Lucky Strike Entertainment on 11 of the 16 factors compared between the two stocks.
About Carnival
Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.
About Lucky Strike Entertainment
Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.
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