Better Buy: Carnival vs. Royal Caribbean
Cruise lines have taken it on the chin from the coronavirus crisis. Sailings have been suspended worldwide, workers have been laid off, and neither of the world's two largest operators -- Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL) -- is incorporated in the U.S., making them (and the majority of their employees) ineligible to get help from the $2 trillion stimulus package that Congress just passed.
While I expect both companies to survive the economic fallout caused by COVID-19, suffice to say this will be more than a short-term bump in the road. Investors looking to open positions in Carnival or Royal Caribbean should be careful. The cruise operators have had to take on new debt (and in the case of Carnival, also sell equity) to remain afloat in these troubled waters. And there's no guessing how quickly vacationers will return to their ships once it's deemed safe enough for them to get back into operation.
One of these companies, however, entered the pandemic crisis in better shape than the other.
Source Fool.com
