Does Royal Caribbean Stock Lead the Pack?
Royal Caribbean (RCL) stock has delivered solid returns over the past year, but how does it truly measure up against peers like Carnival (CCL) and Expedia (EXPE)? A closer look reveals RCL’s industry-leading operating profitability and robust revenue growth. However, its higher valuation and the substantial market outperformance of diversified travel platforms like Expedia suggest potential limitations if broader travel trends continue to favor those segments.
- RCL’s 26.4% operating margin leads peers, reflecting robust cost control and strong pricing power from premium cruise demand.
- RCL’s 8.6% revenue growth outpaces peers, driven by robust post-pandemic cruise demand, strategic fleet expansion, and enhanced guest experiences.
- RCL stock gained 17.2% with a 21.6 PE, showing cruise confidence, yet EXPE delivered stronger returns reflecting robust online travel growth.
Here’s how Royal Caribbean stacks up across size, valuation, and profitability versus key peers.
| RCL | CCL | EXPE | H | NCLH | |
|---|---|---|---|---|---|
| Market Cap ($ Bil) | 76.6 | 37.0 | 35.3 | 15.5 | 9.7 |
| Revenue ($ Bil) | 17.4 | 26.2 | 14.4 | 6.9 | 9.7 |
| PE Ratio | 21.6 | 14.0 | 19.0 | -154.0 | 16.7 |
| LTM Revenue Growth | 8.6% | 7.1% | 7.3% | 3.1% | 3.6% |
| LTM Operating Margin | 26.4% | 16.4% | 13.8% | 6.5% | 16.4% |
| LTM FCF Margin | 11.7% | 11.1% | 20.9% | 1.5% | -10.7% |
| 12M Market Return | 17.2% | 8.8% | 57.4% | 2.1% | -19.1% |
For more details on Royal Caribbean, read Buy or Sell RCL Stock. Below we compare RCL’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| RCL | 8.6% | 18.6% | 57.2% | 477.0% |
| CCL | 7.1% | 15.9% | 77.4% | 537.8% |
| EXPE | 7.3% | 6.6% | 10.0% | 35.7% |
| H | 3.1% | -0.3% | 13.2% | 94.6% |
| NCLH | 3.6% | 10.9% | 76.5% | 647.5% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| RCL | 26.4% | 24.9% | 20.7% | -8.7% |
| CCL | 16.4% | 14.3% | 9.1% | -36.0% |
| EXPE | 13.8% | 12.2% | 11.9% | 10.2% |
| H | 6.5% | 6.3% | 5.0% | 7.2% |
| NCLH | 16.4% | 15.5% | 10.9% | -32.0% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| RCL | 21.6 | 20.9 | 19.5 | -5.8 |
| CCL | 14.0 | 16.6 | -316.2 | -1.6 |
| EXPE | 19.0 | 19.8 | 27.6 | 39.0 |
| H | -154.0 | 12.1 | 62.2 | 21.7 |
| NCLH | 16.7 | 12.3 | 51.2 | -2.3 |
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