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Valuation and Investment - Term Paper Example
Finance & Accounting
Pages 4 (1004 words)
Valuation and Investment Introduction The paper discusses about the choice of investment between the companies called Carnival Cruise Lines (CCL) and Royal Caribbean (RCL). It would be appropriate to know a little bit about these companies and their operations before their financials and other features are touched upon…
More than 60 percent of the potential customers come from US alone. Carnival is a 23.78 billion company by market capitalization. It has 100 ships in its possession and runs 15 hotels comprising of 3420 guest rooms. The company also possesses 395 motor coaches. The company markets its vacation tours through travel agents and operators. The company gets competition from several smaller cruise liners but due to scale of operations the company is in better position to weather them. (Carnival Corporation 2011) Compared to Cruise Lines, Royal Caribbean (RCL) is a smaller company with market capitalization of only $5 billion; however, RCL claims to have the newest fleet in the industry that provides a lot more open space in their fleets. Operationally, they are smaller than Carnival Cruise but hope to pick them fast. Royal Caribbean manages 40 ships and handles traffic of almost 4 million passengers. The Celebrity Cruises segment is meant for premium customers. This segment comprises 9 ships and offers some of the premium services. (Royal Caribbean 2011) Financials It will be appropriate to go through the financials of both the company. The following table shows side by side some of the important key parameters. ...
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