Head-To-Head Review: CAVA Group (NYSE:CAVA) & Norwegian Cruise Line (NYSE:NCLH)

CAVA Group (NYSE:CAVA) and Norwegian Cruise Line (NYSE:NCLH) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Earnings and Valuation

This table compares CAVA Group and Norwegian Cruise Line”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$1.37 billion	5.12	$63.74 million	$0.55	109.42
Norwegian Cruise Line	$10.15 billion	0.70	$423.25 million	$1.60	9.61

Norwegian Cruise Line has higher revenue and earnings than CAVA Group. Norwegian Cruise Line is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CAVA Group has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Norwegian Cruise Line has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Profitability

This table compares CAVA Group and Norwegian Cruise Line’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAVA Group	4.82%	8.28%	4.73%
Norwegian Cruise Line	7.49%	41.38%	4.21%

Analyst Ratings

This is a summary of current recommendations and price targets for CAVA Group and Norwegian Cruise Line, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	9	16	1	2.69
Norwegian Cruise Line	1	15	6	1	2.30

CAVA Group presently has a consensus target price of $89.44, suggesting a potential upside of 48.61%. Norwegian Cruise Line has a consensus target price of $20.95, suggesting a potential upside of 36.22%. Given CAVA Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CAVA Group is more favorable than Norwegian Cruise Line.

Insider and Institutional Ownership

73.2% of CAVA Group shares are owned by institutional investors. Comparatively, 69.6% of Norwegian Cruise Line shares are owned by institutional investors. 6.7% of CAVA Group shares are owned by insiders. Comparatively, 0.3% of Norwegian Cruise Line shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

CAVA Group beats Norwegian Cruise Line on 8 of the 14 factors compared between the two stocks.

About CAVA Group

CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.

About Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various ports, including Scandinavia, Northern Europe, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. It distributes its products through retail/travel advisor and onboard cruise sales channels, as well as meetings, incentives, and charters. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida.