Norwegian Cruise Line (NYSE:NCLH – Get Free Report) and Manchester United (NYSE:MANU – Get Free Report) 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, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
69.6% of Norwegian Cruise Line shares are held by institutional investors. Comparatively, 23.3% of Manchester United shares are held by institutional investors. 0.4% of Norwegian Cruise Line shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Norwegian Cruise Line and Manchester United’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% |
| Manchester United | -2.67% | 0.64% | 0.07% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Norwegian Cruise Line | $9.83 billion | 0.85 | $423.25 million | $1.19 | 15.26 |
| Manchester United | $862.42 million | 4.35 | -$42.74 million | ($0.14) | -155.40 |
Norwegian Cruise Line has higher revenue and earnings than Manchester United. Manchester United is trading at a lower price-to-earnings ratio than Norwegian Cruise Line, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Norwegian Cruise Line has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Manchester United has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and target prices for Norwegian Cruise Line and Manchester United, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Norwegian Cruise Line | 1 | 11 | 8 | 1 | 2.43 |
| Manchester United | 1 | 0 | 0 | 0 | 1.00 |
Norwegian Cruise Line presently has a consensus price target of $21.11, indicating a potential upside of 16.28%. Given Norwegian Cruise Line’s stronger consensus rating and higher possible upside, research analysts clearly believe Norwegian Cruise Line is more favorable than Manchester United.
Summary
Norwegian Cruise Line beats Manchester United on 14 of the 15 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 Manchester United
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.
Receive News & Ratings for Norwegian Cruise Line Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Norwegian Cruise Line and related companies with MarketBeat.com's FREE daily email newsletter.
