Analyzing TUI (OTCMKTS:TUIFF) & Norwegian Cruise Line (NYSE:NCLH)

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

Valuation & Earnings

This table compares TUI and Norwegian Cruise Line’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TUI	N/A	N/A	N/A	$0.31	21.29
Norwegian Cruise Line	$4.84 billion	1.50	-$2.27 billion	($2.02)	-8.48

TUI has higher earnings, but lower revenue than Norwegian Cruise Line. Norwegian Cruise Line is trading at a lower price-to-earnings ratio than TUI, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TUI	N/A	N/A	N/A
Norwegian Cruise Line	-11.88%	-863.25%	-4.45%

Analyst Ratings

This is a summary of recent recommendations for TUI and Norwegian Cruise Line, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TUI	0	3	2	0	2.40
Norwegian Cruise Line	2	7	4	1	2.29

Norwegian Cruise Line has a consensus price target of $19.70, suggesting a potential upside of 15.07%. Given Norwegian Cruise Line’s higher probable upside, analysts clearly believe Norwegian Cruise Line is more favorable than TUI.

Insider & Institutional Ownership

13.6% of TUI shares are owned by institutional investors. Comparatively, 60.5% of Norwegian Cruise Line shares are owned by institutional investors. 0.9% of Norwegian Cruise Line shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Norwegian Cruise Line beats TUI on 6 of the 11 factors compared between the two stocks.

About TUI

TUI AG, together with its subsidiaries, provides tourism services worldwide. It operates hotels and resorts under the Robinson, Riu, TUI Blue, Blue Diamond, TUI Suneo, and TUI Magic Life brands. The company is also involved in the tour operation and airlines businesses. In addition, it operates cruise liners under the Mein Schiff, Hapag-Lloyd Cruises, and Marella brands. The company operates 1,600 travel agencies and online portals; 134 aircraft; and 16 cruise liners, as well as 418 hotels. The company was formerly known as Preussag AG and changed its name to TUI AG in June 2002. TUI AG is headquartered in Hanover, Germany.

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 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 locations, including destinations in Scandinavia, Russia, 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. The company was founded in 1966 and is based in Miami, Florida.