Financial Contrast: Norwegian Cruise Line (NCLH) versus Its Rivals

Norwegian Cruise Line (NASDAQ:NCLH – Get Rating) is one of 30 publicly-traded companies in the “Water transportation” industry, but how does it weigh in compared to its competitors? We will compare Norwegian Cruise Line to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, institutional ownership, dividends and earnings.

Insider and Institutional Ownership

57.2% of Norwegian Cruise Line shares are owned by institutional investors. Comparatively, 53.8% of shares of all “Water transportation” companies are owned by institutional investors. 0.8% of Norwegian Cruise Line shares are owned by company insiders. Comparatively, 6.4% of shares of all “Water transportation” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Norwegian Cruise Line and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Norwegian Cruise Line	$4.84 billion	-$2.27 billion	-2.33
Norwegian Cruise Line Competitors	$2.82 billion	-$689.72 million	13.10

Norwegian Cruise Line has higher revenue, but lower earnings than its competitors. Norwegian Cruise Line is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Norwegian Cruise Line has a beta of 2.51, meaning that its stock price is 151% more volatile than the S&P 500. Comparatively, Norwegian Cruise Line’s competitors have a beta of 1.41, meaning that their average stock price is 41% more volatile than the S&P 500.

Profitability

This table compares Norwegian Cruise Line and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norwegian Cruise Line	-46.86%	-286.66%	-10.87%
Norwegian Cruise Line Competitors	13.86%	-14.90%	2.92%

Analyst Recommendations

This is a breakdown of current recommendations for Norwegian Cruise Line and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norwegian Cruise Line	0	0	0	0	N/A
Norwegian Cruise Line Competitors	302	1162	1867	33	2.48

As a group, “Water transportation” companies have a potential upside of 57.15%. Given Norwegian Cruise Line’s competitors higher probable upside, analysts plainly believe Norwegian Cruise Line has less favorable growth aspects than its competitors.

Summary

Norwegian Cruise Line competitors beat Norwegian Cruise Line on 7 of the 10 factors compared.

Norwegian Cruise Line Company Profile

(Get Rating)

Norwegian Cruise Line Holdings Ltd. engages in the provision of cruise travel services. It provides cruise experiences for travelers with itineraries in Europe, Asia, Australia, New Zealand, South America, Africa, Canada, Bermuda, Caribbean, Alaska and Hawaii. It also offers an entirely inter-island itinerary in Hawaii. Its brands include Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. The company was founded in 1966 and is headquartered in Miami, FL.