Head to Head Review: Royal Caribbean Cruises (NYSE:RCL) vs. Town Sports International (OTCMKTS:CLUBQ)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Royal Caribbean Cruises and Town Sports International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Caribbean Cruises	0	4	19	1	2.88
Town Sports International	0	0	0	0	0.00

Royal Caribbean Cruises currently has a consensus target price of $326.95, indicating a potential upside of 3.94%. Given Royal Caribbean Cruises’ stronger consensus rating and higher probable upside, equities analysts clearly believe Royal Caribbean Cruises is more favorable than Town Sports International.

Valuation and Earnings

This table compares Royal Caribbean Cruises and Town Sports International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Caribbean Cruises	$16.48 billion	5.18	$2.88 billion	$13.34	23.58
Town Sports International	N/A	N/A	N/A	N/A	N/A

Royal Caribbean Cruises has higher revenue and earnings than Town Sports International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Royal Caribbean Cruises	20.97%	47.15%	10.19%
Town Sports International	N/A	N/A	N/A

Institutional and Insider Ownership

87.5% of Royal Caribbean Cruises shares are held by institutional investors. 7.0% of Royal Caribbean Cruises shares are held by company insiders. Comparatively, 32.2% of Town Sports International shares are held by company 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.

Summary

Royal Caribbean Cruises beats Town Sports International on 9 of the 10 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 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.