Target Hospitality (NASDAQ:TH) versus Norwegian Cruise Line (NYSE:NCLH) Head-To-Head Review

Norwegian Cruise Line (NYSE:NCLH) and Target Hospitality (NASDAQ:TH) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Institutional and Insider Ownership

69.6% of Norwegian Cruise Line shares are owned by institutional investors. Comparatively, 32.4% of Target Hospitality shares are owned by institutional investors. 0.4% of Norwegian Cruise Line shares are owned by insiders. Comparatively, 68.0% of Target Hospitality shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Norwegian Cruise Line and Target Hospitality”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norwegian Cruise Line	$9.48 billion	1.06	$910.26 million	$1.36	16.19
Target Hospitality	$386.27 million	1.96	$71.26 million	($0.11)	-69.00

Norwegian Cruise Line has higher revenue and earnings than Target Hospitality. Target Hospitality is trading at a lower price-to-earnings ratio than Norwegian Cruise Line, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Norwegian Cruise Line has a beta of 2.07, suggesting that its share price is 107% more volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Profitability

This table compares Norwegian Cruise Line and Target Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norwegian Cruise Line	6.85%	55.51%	4.31%
Target Hospitality	-3.08%	-1.78%	-1.24%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Norwegian Cruise Line and Target Hospitality, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norwegian Cruise Line	0	10	12	2	2.67
Target Hospitality	1	0	2	1	2.75

Norwegian Cruise Line currently has a consensus target price of $27.68, indicating a potential upside of 25.72%. Target Hospitality has a consensus target price of $13.00, indicating a potential upside of 71.28%. Given Target Hospitality’s stronger consensus rating and higher probable upside, analysts clearly believe Target Hospitality is more favorable than Norwegian Cruise Line.

Summary

Norwegian Cruise Line beats Target Hospitality on 11 of the 15 factors compared between the two stocks.

About Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various ports, including Scandinavia, Northern Europe, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. It distributes its products through retail/travel advisor and onboard cruise sales channels, as well as meetings, incentives, and charters. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida.

About Target Hospitality

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.