Between Booking and Royal Caribbean, Which Stock Looks Set to Break Out?
Royal Caribbean surged 11% during the past Week. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Booking gives you more. Booking (BKNG) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Royal Caribbean (RCL) stock, suggesting you may be better off investing in BKNG
- BKNG’s quarterly revenue growth was 16.2%, vs. RCL’s 11.3%.
- In addition, its Last 12 Months revenue growth came in at 15.0%, ahead of RCL’s 9.7%.
- BKNG leads on profitability over both periods – LTM margin of 34.3% and 3-year average of 31.6%.
These differences become even clearer when you look at the financials side by side. The table highlights how RCL’s fundamentals stack up against those of BKNG on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| RCL | BKNG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 14.8 | 14.1 | BKNG |
| Revenue Growth | |||
| Last Quarter | 11.3% | 16.2% | BKNG |
| Last 12 Months | 9.7% | 15.0% | BKNG |
| Last 3 Year Average | 20.5% | 15.2% | RCL |
| Operating Margins | |||
| Last 12 Months | 27.9% | 34.3% | BKNG |
| Last 3 Year Average | 25.5% | 31.6% | BKNG |
| Momentum | |||
| Last 3 Year Return | 264.3% | 66.9% | RCL |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
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See detailed fundamentals on Buy or Sell BKNG Stock and Buy or Sell RCL Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| RCL Return | 3% | -36% | 162% | 79% | 22% | -1% | 277% | <=== | |
| BKNG Return | 8% | -16% | 76% | 41% | 9% | -21% | 93% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% | ||
| Monthly Win Rates [3] | |||||||||
| RCL Win Rate | 50% | 58% | 67% | 67% | 58% | 40% | 57% | ||
| BKNG Win Rate | 58% | 50% | 75% | 58% | 50% | 20% | 52% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| RCL Max Drawdown | -34% | -64% | -27% | -19% | -35% | -29% | -35% | ||
| BKNG Max Drawdown | -22% | -40% | -15% | -20% | -21% | -30% | -25% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/28/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read BKNG Dip Buyer Analyses and RCL Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about RCL or BKNG? Consider portfolio approach.
The Best Investors Think In Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio helps you ride market volatility, boosts gains, and reduces single stock risk.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.