Carnival (NYSE:CCL) vs. Manchester United (NYSE:MANU) Financial Analysis

Manchester United (NYSE:MANUGet Free Report) and Carnival (NYSE:CCLGet Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Earnings and Valuation

This table compares Manchester United and Carnival”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manchester United $862.42 million 3.47 -$42.74 million ($0.31) -56.00
Carnival $26.62 billion 1.41 $2.76 billion $2.00 15.20

Carnival has higher revenue and earnings than Manchester United. Manchester United is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

23.3% of Manchester United shares are owned by institutional investors. Comparatively, 67.2% of Carnival shares are owned by institutional investors. 7.6% of Carnival shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Manchester United and Carnival, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manchester United 1 0 0 0 1.00
Carnival 0 8 19 1 2.75

Carnival has a consensus target price of $35.00, indicating a potential upside of 15.17%. Given Carnival’s stronger consensus rating and higher possible upside, analysts plainly believe Carnival is more favorable than Manchester United.

Profitability

This table compares Manchester United and Carnival’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manchester United -6.14% -10.21% -1.20%
Carnival 10.37% 28.39% 6.09%

Risk & Volatility

Manchester United has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Carnival has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.

Summary

Carnival beats Manchester United on 14 of the 15 factors compared between the two stocks.

About Manchester United

(Get Free Report)

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.

About Carnival

(Get Free Report)

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.

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