Analyzing Flight Centre (OTCMKTS:FGETF) & Viking (NYSE:VIK)

Flight Centre (OTCMKTS:FGETF) and Viking (NYSE:VIK) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

98.8% of Viking shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Flight Centre has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500. Comparatively, Viking has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.

Profitability

This table compares Flight Centre and Viking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flight Centre	N/A	N/A	N/A
Viking	15.53%	716.92%	9.82%

Valuation & Earnings

This table compares Flight Centre and Viking”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flight Centre	$1.80 billion	0.99	$70.90 million	N/A	N/A
Viking	$5.33 billion	5.57	$152.33 million	$2.14	31.34

Viking has higher revenue and earnings than Flight Centre.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Flight Centre and Viking, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flight Centre	0	0	1	1	3.50
Viking	1	7	9	0	2.47

Viking has a consensus price target of $62.13, suggesting a potential downside of 7.37%. Given Viking’s higher probable upside, analysts clearly believe Viking is more favorable than Flight Centre.

Summary

Viking beats Flight Centre on 10 of the 12 factors compared between the two stocks.

About Flight Centre

Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets. It also provides tour operations, hotel management, and destination management services. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, and cievents. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. The company was incorporated in 1987 and is headquartered in South Brisbane, Australia.

About Viking

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.