Head to Head Survey: Carnival (CCL) and Golden Ocean Group (GOGL)

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Carnival (NASDAQ: GOGL) and Golden Ocean Group (NASDAQ:GOGL) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares Carnival and Golden Ocean Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carnival $17.51 billion 1.87 $2.61 billion $3.82 16.12
Golden Ocean Group $460.02 million 2.96 -$2.34 million ($0.02) -472.50

Carnival has higher revenue and earnings than Golden Ocean Group. Golden Ocean Group is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Carnival and Golden Ocean Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carnival 0 5 12 0 2.71
Golden Ocean Group 0 1 3 0 2.75

Carnival currently has a consensus price target of $74.53, suggesting a potential upside of 21.03%. Golden Ocean Group has a consensus price target of $11.17, suggesting a potential upside of 18.17%. Given Carnival’s higher possible upside, equities analysts plainly believe Carnival is more favorable than Golden Ocean Group.

Profitability

This table compares Carnival and Golden Ocean Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carnival 15.40% 12.31% 7.21%
Golden Ocean Group 9.34% 3.68% 1.86%

Institutional & Insider Ownership

75.7% of Carnival shares are held by institutional investors. Comparatively, 23.8% of Golden Ocean Group shares are held by institutional investors. 23.8% of Carnival shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Carnival pays an annual dividend of $2.00 per share and has a dividend yield of 3.2%. Golden Ocean Group pays an annual dividend of $0.40 per share and has a dividend yield of 4.2%. Carnival pays out 52.4% of its earnings in the form of a dividend. Golden Ocean Group pays out -2,000.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Carnival has raised its dividend for 3 consecutive years. Golden Ocean Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Carnival has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Golden Ocean Group has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.

Summary

Carnival beats Golden Ocean Group on 12 of the 17 factors compared between the two stocks.

Carnival Company Profile

Carnival Corporation operates as a leisure travel and cruise company. It offers cruises under the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn brands in North America; and AIDA, Costa, P&O Cruises (Australia), Cunard, and P&O Cruises (UK) brands in Europe, Australia, and Asia. The company operates approximately 100 cruise ships. It also owns Holland America Princess Alaska Tours, a tour company in Alaska; and the Canadian Yukon, which owns and operates hotels, lodges, glass-domed railcars, and motor coaches. In addition, the company is involved in the lease of cruise ships. It sells its cruises primarily through travel agents and tour operators. The company was incorporated in 1972 and is headquartered in Miami, Florida. Carnival Corporation is a subsidiary of Carnival Corporation & plc.

Golden Ocean Group Company Profile

Golden Ocean Group Limited, a shipping company, engages in the transportation of bulk commodities worldwide. It owns and operates a fleet of dry bulk vessels, including Newcastlemax, Capesize, Panamax, and Ultramax vessels in the spot and time charter markets. The company transports bulk commodities, such as ores, coal, grains, and fertilizers. As of March 20, 2018, it owned 68 dry bulk vessels, as well as had 10 chartered-in vessels. The company is based in Hamilton, Bermuda.

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