Head-To-Head Comparison: Carnival (NYSE:CCL) & Town Sports International (OTCMKTS:CLUBQ)

Town Sports International (OTCMKTS:CLUBQ) and Carnival (NYSE:CCL) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Town Sports International and Carnival, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Town Sports International	0	0	0	0	0.00
Carnival	0	8	19	1	2.75

Carnival has a consensus price target of $35.00, suggesting a potential upside of 15.17%. Given Carnival’s stronger consensus rating and higher possible upside, analysts clearly believe Carnival is more favorable than Town Sports International.

Insider & Institutional Ownership

67.2% of Carnival shares are held by institutional investors. 32.2% of Town Sports International shares are held by insiders. Comparatively, 7.6% of Carnival shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Town Sports International and Carnival”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Town Sports International	N/A	N/A	N/A	N/A	N/A
Carnival	$26.62 billion	1.41	$2.76 billion	$2.00	15.20

Carnival has higher revenue and earnings than Town Sports International.

Profitability

This table compares Town Sports International and Carnival’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Town Sports International	N/A	N/A	N/A
Carnival	10.37%	28.39%	6.09%

Summary

Carnival beats Town Sports International on 9 of the 10 factors compared between the two stocks.

About Town Sports International

Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company's clubs offer special purpose rooms for group fitness classes; and other exercise programs, as well as accommodate cardiovascular and strength-training equipment. Its clubs also provide amenities, including swimming pools, racquet and basketball courts, and functional training zones, as well as babysitting services; and fee-based program services, which comprise personal and small group training, children's programs, and summer camps for kids. The company sells its memberships through direct sales at the club level, as well as corporate and group sales; and through its Websites. As of December 31, 2019, it owned and operated 186 fitness clubs. The company was founded in 1973 and is based in Jupiter, Florida.

About Carnival

Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.