Carnival (NYSE:CUK – Get Free Report) and Vail Resorts (NYSE:MTN – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Institutional and Insider Ownership
23.8% of Carnival shares are held by institutional investors. Comparatively, 94.9% of Vail Resorts shares are held by institutional investors. 0.1% of Carnival shares are held by insiders. Comparatively, 1.2% of Vail Resorts shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Carnival and Vail Resorts, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carnival | 0 | 1 | 0 | 0 | 2.00 |
| Vail Resorts | 1 | 8 | 4 | 0 | 2.23 |
Profitability
This table compares Carnival and Vail Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carnival | 10.37% | 28.39% | 6.09% |
| Vail Resorts | 8.94% | 32.51% | 4.66% |
Earnings and Valuation
This table compares Carnival and Vail Resorts”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carnival | $26.62 billion | 0.22 | $2.76 billion | $2.00 | 15.38 |
| Vail Resorts | $2.96 billion | 1.71 | $280.00 million | $6.82 | 20.73 |
Carnival has higher revenue and earnings than Vail Resorts. Carnival is trading at a lower price-to-earnings ratio than Vail Resorts, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Carnival has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500. Comparatively, Vail Resorts has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Summary
Vail Resorts beats Carnival on 9 of the 14 factors compared between the two stocks.
About Carnival
Carnival Plc operates as a global cruise and vacation company. The firm offers holiday and vacation products to a customer base that is broadly varied in terms of cultures, languages and leisure-time preferences. It operates through the North America and Australia (NAA), Europe and Asia (EA), Cruise Support, and Tour and Other segments. The NAA segment includes Carnival Cruise Line, Holland America Line, P and O Cruises (Australia), Princess and Seabourn. The EA segment includes AIDA, Costa, Cunard, and P and O Cruises (UK). The Cruise Support segment includes a portfolio of port destinations and other services, all of which are operated for the benefit of cruise brands. The Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. The company was founded on July 19, 2000 and is headquartered in Southampton, the United Kingdom.
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.
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