Royal Caribbean Cruises (NYSE:RCL) vs. Intergroup (NASDAQ:INTG) Head to Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Royal Caribbean Cruises	23.54%	43.33%	10.56%
Intergroup	2.22%	-1.43%	1.60%

Institutional and Insider Ownership

87.5% of Royal Caribbean Cruises shares are owned by institutional investors. Comparatively, 3.4% of Intergroup shares are owned by institutional investors. 6.4% of Royal Caribbean Cruises shares are owned by company insiders. Comparatively, 73.8% of Intergroup shares are owned 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 breakdown of recent ratings for Royal Caribbean Cruises and Intergroup, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Caribbean Cruises	0	7	15	1	2.74
Intergroup	0	1	0	0	2.00

Royal Caribbean Cruises currently has a consensus price target of $357.80, suggesting a potential upside of 32.49%. Given Royal Caribbean Cruises’ stronger consensus rating and higher possible upside, analysts clearly believe Royal Caribbean Cruises is more favorable than Intergroup.

Valuation and Earnings

This table compares Royal Caribbean Cruises and Intergroup”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$17.93 billion	4.03	$4.27 billion	$16.18	16.69
Intergroup	$73.95 million	0.82	-$5.35 million	$0.71	39.66

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

Volatility & Risk

Royal Caribbean Cruises has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Intergroup has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.

Summary

Royal Caribbean Cruises beats Intergroup 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 Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.