Royal Caribbean Cruises (NYSE:RCL – Get Free Report) and BT Brands (NASDAQ:BTBD – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
Volatility and Risk
Royal Caribbean Cruises has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, BT Brands has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
Institutional and Insider Ownership
87.5% of Royal Caribbean Cruises shares are held by institutional investors. Comparatively, 0.4% of BT Brands shares are held by institutional investors. 6.4% of Royal Caribbean Cruises shares are held by insiders. Comparatively, 19.6% of BT Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Royal Caribbean Cruises | $17.93 billion | 3.95 | $4.27 billion | $16.18 | 16.38 |
| BT Brands | $13.49 million | 0.83 | -$690,000.00 | ($0.09) | -20.22 |
Royal Caribbean Cruises has higher revenue and earnings than BT Brands. BT Brands is trading at a lower price-to-earnings ratio than Royal Caribbean Cruises, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Royal Caribbean Cruises and BT Brands, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Royal Caribbean Cruises | 0 | 8 | 13 | 1 | 2.68 |
| BT Brands | 1 | 0 | 0 | 0 | 1.00 |
Royal Caribbean Cruises currently has a consensus price target of $353.40, indicating a potential upside of 33.35%. Given Royal Caribbean Cruises’ stronger consensus rating and higher possible upside, equities analysts plainly believe Royal Caribbean Cruises is more favorable than BT Brands.
Profitability
This table compares Royal Caribbean Cruises and BT Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Royal Caribbean Cruises | 23.54% | 43.33% | 10.56% |
| BT Brands | -4.57% | -8.99% | -5.45% |
Summary
Royal Caribbean Cruises beats BT Brands on 14 of the 15 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 BT Brands
BT Brands, Inc. owns and operates fast-food restaurants in the north central region of United States. The company operates Burger Time restaurants located in Minnesota, North Dakota, and South Dakota; and a Dairy Queen franchise in Ham Lake, Minnesota. Its Burger Time restaurants provide various burgers and other food products, such as chicken sandwiches, pulled pork sandwiches, chicken chunks, side dishes, and soft drinks; and Dairy Queen restaurant offers burgers, chicken, sides, ice cream and other desserts, and various beverages. The company was founded in 1987 and is based in West Fargo, North Dakota.
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