Analyzing Sportradar Group (NASDAQ:SRAD) and Royal Caribbean Cruises (NYSE:RCL)

Sportradar Group (NASDAQ:SRAD) and Royal Caribbean Cruises (NYSE:RCL) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Sportradar Group and Royal Caribbean Cruises, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportradar Group	0	9	9	2	2.65
Royal Caribbean Cruises	0	8	19	1	2.75

Sportradar Group currently has a consensus price target of $19.19, suggesting a potential upside of 61.10%. Royal Caribbean Cruises has a consensus price target of $350.88, suggesting a potential upside of 26.60%. Given Sportradar Group’s higher probable upside, research analysts clearly believe Sportradar Group is more favorable than Royal Caribbean Cruises.

Valuation and Earnings

This table compares Sportradar Group and Royal Caribbean Cruises”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportradar Group	$1.39 billion	2.57	$113.50 million	$0.06	198.50
Royal Caribbean Cruises	$17.93 billion	4.13	$4.27 billion	$16.18	17.13

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

Institutional & Insider Ownership

87.5% of Royal Caribbean Cruises shares are held by institutional investors. 85.0% of Sportradar Group shares are held by company insiders. Comparatively, 6.4% of Royal Caribbean Cruises shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Sportradar Group and Royal Caribbean Cruises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sportradar Group	1.23%	1.89%	0.65%
Royal Caribbean Cruises	23.54%	43.33%	10.56%

Risk & Volatility

Sportradar Group has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Royal Caribbean Cruises has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.

Summary

Royal Caribbean Cruises beats Sportradar Group on 11 of the 15 factors compared between the two stocks.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.

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.