Comparing HWH International (NASDAQ:HWH) and Royal Caribbean Cruises (NYSE:RCL)

Royal Caribbean Cruises (NYSE:RCL) and HWH International (NASDAQ:HWH) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Risk & Volatility

Royal Caribbean Cruises has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, HWH International has a beta of -0.23, suggesting that its share price is 123% less volatile than the S&P 500.

Profitability

This table compares Royal Caribbean Cruises and HWH International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Caribbean Cruises	23.80%	45.06%	10.87%
HWH International	-314.53%	-86.51%	-40.57%

Valuation & Earnings

This table compares Royal Caribbean Cruises and HWH International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$17.94 billion	4.30	$4.27 billion	$15.61	18.27
HWH International	$870,000.00	10.06	-$2.63 million	($0.41)	-2.85

Royal Caribbean Cruises has higher revenue and earnings than HWH International. HWH International is trading at a lower price-to-earnings ratio than Royal Caribbean Cruises, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Royal Caribbean Cruises and HWH International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Caribbean Cruises	0	4	17	1	2.86
HWH International	1	0	0	0	1.00

Royal Caribbean Cruises currently has a consensus price target of $349.20, suggesting a potential upside of 22.45%. Given Royal Caribbean Cruises’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Royal Caribbean Cruises is more favorable than HWH International.

Insider and Institutional Ownership

87.5% of Royal Caribbean Cruises shares are held by institutional investors. Comparatively, 25.7% of HWH International shares are held by institutional investors. 7.0% of Royal Caribbean Cruises shares are held by insiders. Comparatively, 78.4% of HWH International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Royal Caribbean Cruises beats HWH International on 13 of the 15 factors compared between the two stocks.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

About HWH International

HWH International Inc. operates a marketplace to provide products and services for health, wealth, and happiness. The company operates through HWH Marketplace, Hapi Cafés, Hapi Travel, and Hapi Wealth Builder segments. The HWH Marketplace segment provides products manufactured by its affiliate companies at a discounted price to its members. The Hapi Cafés segment operates Hapi Cafe branded outlets in Asia, including Singapore, Republic of China (Taiwan), Hong Kong, the People's Republic of China, and South Korea. The Hapi Travel segment offers vacation packages, hotels, cruises, and other travel products for HWH members. The Hapi Wealth Builder segment focuses on exploring the options of providing services to its members through financial educational materials. The company is based in Bethesda, Maryland. HWH International Inc. operates as a subsidiary of Alset International Limited.