Critical Analysis: Viking (NYSE:VIK) versus Norwegian Cruise Line (NYSE:NCLH)

Viking (NYSE:VIK) and Norwegian Cruise Line (NYSE:NCLH) are both large-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viking	-10.97%	N/A	-1.53%
Norwegian Cruise Line	5.87%	99.31%	3.12%

Institutional & Insider Ownership

69.6% of Norwegian Cruise Line shares are owned by institutional investors. 0.5% of Norwegian Cruise Line shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Viking and Norwegian Cruise Line, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viking	0	2	10	0	2.83
Norwegian Cruise Line	1	8	6	1	2.44

Viking currently has a consensus target price of $41.92, suggesting a potential downside of 9.90%. Norwegian Cruise Line has a consensus target price of $28.27, suggesting a potential upside of 2.23%. Given Norwegian Cruise Line’s higher probable upside, analysts clearly believe Norwegian Cruise Line is more favorable than Viking.

Valuation & Earnings

This table compares Viking 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
Viking	$4.71 billion	4.26	-$1.86 billion	N/A	N/A
Norwegian Cruise Line	$8.55 billion	1.42	$166.18 million	$1.09	25.37

Norwegian Cruise Line has higher revenue and earnings than Viking.

Summary

Norwegian Cruise Line beats Viking on 9 of the 12 factors compared between the two stocks.

About Viking

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.

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.