Royal Caribbean Cruises (NYSE:RCL) versus H.I.S. (OTCMKTS:HISJF) Critical Review

Royal Caribbean Cruises (NYSE:RCL) and H.I.S. (OTCMKTS:HISJF) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Royal Caribbean Cruises and H.I.S., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Caribbean Cruises	0	4	18	1	2.87
H.I.S.	0	0	0	0	0.00

Royal Caribbean Cruises presently has a consensus price target of $348.29, suggesting a potential upside of 12.17%. Given Royal Caribbean Cruises’ stronger consensus rating and higher possible upside, equities analysts plainly believe Royal Caribbean Cruises is more favorable than H.I.S..

Volatility & Risk

Royal Caribbean Cruises has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500. Comparatively, H.I.S. has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500.

Institutional and Insider Ownership

87.5% of Royal Caribbean Cruises shares are owned by institutional investors. 7.0% of Royal Caribbean Cruises 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 & Valuation

This table compares Royal Caribbean Cruises and H.I.S.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$17.94 billion	4.68	$4.27 billion	$15.61	19.89
H.I.S.	$2.50 billion	0.39	$31.62 million	$0.40	32.73

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

Profitability

This table compares Royal Caribbean Cruises and H.I.S.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Caribbean Cruises	23.80%	45.06%	10.87%
H.I.S.	1.22%	13.69%	2.27%

Summary

Royal Caribbean Cruises beats H.I.S. on 14 of the 15 factors compared between the two stocks.

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.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.