Royal Caribbean Cruises (RCL) vs. Golar LNG Partners (GMLP) Head to Head Analysis

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

Institutional & Insider Ownership

71.5% of Royal Caribbean Cruises shares are owned by institutional investors. Comparatively, 38.8% of Golar LNG Partners shares are owned by institutional investors. 15.3% of Royal Caribbean Cruises 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.

Volatility and Risk

Royal Caribbean Cruises has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Golar LNG Partners has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Valuation & Earnings

This table compares Royal Caribbean Cruises and Golar LNG Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Royal Caribbean Cruises $8.78 billion 2.63 $1.63 billion $7.53 14.65
Golar LNG Partners $433.10 million 2.14 $129.28 million $1.88 6.92

Royal Caribbean Cruises has higher revenue and earnings than Golar LNG Partners. Golar LNG Partners 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.

Dividends

Royal Caribbean Cruises pays an annual dividend of $2.80 per share and has a dividend yield of 2.5%. Golar LNG Partners pays an annual dividend of $1.62 per share and has a dividend yield of 12.5%. Royal Caribbean Cruises pays out 37.2% of its earnings in the form of a dividend. Golar LNG Partners pays out 86.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Royal Caribbean Cruises has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for Royal Caribbean Cruises and Golar LNG Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royal Caribbean Cruises 0 3 11 0 2.79
Golar LNG Partners 0 8 2 0 2.20

Royal Caribbean Cruises currently has a consensus price target of $140.83, indicating a potential upside of 27.71%. Golar LNG Partners has a consensus price target of $18.75, indicating a potential upside of 44.12%. Given Golar LNG Partners’ higher possible upside, analysts clearly believe Golar LNG Partners is more favorable than Royal Caribbean Cruises.

Profitability

This table compares Royal Caribbean Cruises and Golar LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royal Caribbean Cruises 19.46% 16.93% 7.55%
Golar LNG Partners 32.94% 16.95% 5.04%

Summary

Royal Caribbean Cruises beats Golar LNG Partners on 13 of the 17 factors compared between the two stocks.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd. operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises brands. The Royal Caribbean International brand provides itineraries to destinations worldwide, including Alaska, Asia, Australia, Bahamas, Bermuda, Canada, the Caribbean, Europe, the Panama Canal, and New Zealand with cruise lengths that range from 2 to 23 nights. The Celebrity Cruises brand offers itineraries to destinations, such as Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, India, New Zealand, the Panama Canal, and South America with cruise lengths ranging from 2 to 19 nights. The Azamara Club Cruises brand offers cruise itineraries ranging from 4 to 21 nights to destinations, including Asia, Australia/New Zealand, Northern and Western Europe, the Mediterranean, Central and North America, and the less-traveled islands of the Caribbean. As of December 31, 2017, the company operated 49 ships with itineraries ranging from 2 to 23 nights to approximately 540 destinations. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

Golar LNG Partners Company Profile

Golar LNG Partners LP owns and operates floating storage regasification units (FSRUs) and liquefied natural gas (LNG) carriers under long-term charters in Brazil, Indonesia, Jordan, Kuwait, and the United Arab Emirates. As of April 6, 2018, it had a fleet of six FSRUs and four LNG carriers. Golar GP LLC serves as the general partner of Golar LNG Partners LP. The company was founded in 2007 and is headquartered in Hamilton, Bermuda. Golar LNG Partners LP is a subsidiary of Golar LNG Limited.

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