Flight Centre (OTCMKTS:FGETF) versus Norwegian Cruise Line (NYSE:NCLH) Critical Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Norwegian Cruise Line	5.66%	47.84%	4.46%
Flight Centre	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Norwegian Cruise Line and Flight Centre, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norwegian Cruise Line	0	12	7	1	2.45
Flight Centre	0	0	1	1	3.50

Norwegian Cruise Line presently has a consensus target price of $22.24, indicating a potential upside of 30.23%. Given Norwegian Cruise Line’s higher probable upside, research analysts clearly believe Norwegian Cruise Line is more favorable than Flight Centre.

Insider & Institutional Ownership

69.6% of Norwegian Cruise Line shares are owned by institutional investors. 0.4% of Norwegian Cruise Line shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Norwegian Cruise Line has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500. Comparatively, Flight Centre has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Valuation & Earnings

This table compares Norwegian Cruise Line and Flight Centre”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norwegian Cruise Line	$9.83 billion	0.80	$423.25 million	$1.19	14.35
Flight Centre	$1.80 billion	0.89	$70.90 million	N/A	N/A

Norwegian Cruise Line has higher revenue and earnings than Flight Centre.

Summary

Norwegian Cruise Line beats Flight Centre on 10 of the 12 factors compared between the two stocks.

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.

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.