Norwegian Cruise Line (NYSE:NCLH – Get Free Report) and Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
69.6% of Norwegian Cruise Line shares are held by institutional investors. Comparatively, 68.1% of Lucky Strike Entertainment shares are held by institutional investors. 0.4% of Norwegian Cruise Line shares are held by insiders. Comparatively, 84.2% of Lucky Strike Entertainment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Norwegian Cruise Line has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Lucky Strike Entertainment has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Norwegian Cruise Line | 5.66% | 47.84% | 4.46% |
| Lucky Strike Entertainment | -6.79% | N/A | -2.61% |
Analyst Recommendations
This is a summary of current ratings and target prices for Norwegian Cruise Line and Lucky Strike Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Norwegian Cruise Line | 1 | 12 | 8 | 2 | 2.48 |
| Lucky Strike Entertainment | 2 | 5 | 3 | 0 | 2.10 |
Norwegian Cruise Line currently has a consensus target price of $20.95, suggesting a potential upside of 7.65%. Lucky Strike Entertainment has a consensus target price of $8.69, suggesting a potential downside of 1.47%. Given Norwegian Cruise Line’s stronger consensus rating and higher possible upside, research analysts clearly believe Norwegian Cruise Line is more favorable than Lucky Strike Entertainment.
Valuation and Earnings
This table compares Norwegian Cruise Line and Lucky Strike Entertainment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Norwegian Cruise Line | $9.83 billion | 0.91 | $423.25 million | $1.19 | 16.35 |
| Lucky Strike Entertainment | $1.20 billion | 1.00 | -$10.02 million | ($0.62) | -14.22 |
Norwegian Cruise Line has higher revenue and earnings than Lucky Strike Entertainment. Lucky Strike Entertainment 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.
Summary
Norwegian Cruise Line beats Lucky Strike Entertainment on 13 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 Lucky Strike Entertainment
Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.
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