Royal Caribbean Cruises (NYSE:RCL) vs. Vail Resorts (NYSE:MTN) Head-To-Head Survey

Vail Resorts (NYSE:MTN) and Royal Caribbean Cruises (NYSE:RCL) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vail Resorts	8.94%	32.51%	4.66%
Royal Caribbean Cruises	23.33%	44.68%	10.36%

Earnings & Valuation

This table compares Vail Resorts and Royal Caribbean Cruises”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vail Resorts	$2.96 billion	1.69	$280.00 million	$6.82	20.57
Royal Caribbean Cruises	$16.48 billion	4.73	$2.88 billion	$14.87	19.21

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

Dividends

Vail Resorts pays an annual dividend of $8.88 per share and has a dividend yield of 6.3%. Royal Caribbean Cruises pays an annual dividend of $4.00 per share and has a dividend yield of 1.4%. Vail Resorts pays out 130.2% 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 pays out 26.9% of its earnings in the form of a dividend. Vail Resorts has increased its dividend for 3 consecutive years and Royal Caribbean Cruises has increased its dividend for 1 consecutive years. Vail Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Vail Resorts has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Royal Caribbean Cruises has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.

Insider & Institutional Ownership

94.9% of Vail Resorts shares are owned by institutional investors. Comparatively, 87.5% of Royal Caribbean Cruises shares are owned by institutional investors. 1.2% of Vail Resorts shares are owned by company insiders. Comparatively, 7.0% of Royal Caribbean Cruises shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Vail Resorts and Royal Caribbean Cruises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vail Resorts	1	8	3	0	2.17
Royal Caribbean Cruises	0	4	19	1	2.88

Vail Resorts presently has a consensus target price of $176.30, suggesting a potential upside of 25.69%. Royal Caribbean Cruises has a consensus target price of $324.82, suggesting a potential upside of 13.69%. Given Vail Resorts’ higher possible upside, equities research analysts clearly believe Vail Resorts is more favorable than Royal Caribbean Cruises.

Summary

Royal Caribbean Cruises beats Vail Resorts on 13 of the 18 factors compared between the two stocks.

About Vail Resorts

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities. The Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand; other lodging properties; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties. The company was founded in 1845 and is based in Broomfield, Colorado.

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.