Better Buy: Royal Caribbean Group vs. Carnival Cruise Lines?
Royal Caribbean Group (NYSE: RCL) and Carnival Cruise Lines (NYSE: CCL) both took big hits as countries locked down shores and travelers hunkered down during the early days of the pandemic. As the world returns to normalcy, these top cruise providers are slowly returning to full operation, and new bookings increase.
Between the two, one has gained a serious upper hand in recovery. The other has a forward-looking approach that should help it return to pre-pandemic levels over the next few years, and both predict a likely return to profitability in the very near future. Choosing the better buy may come down to your aversion to risk, but the time seems right to pick up cruise line stocks ahead of a likely potential rebound.
Royal Caribbean Group boasts many of the world's largest cruise ships, delivering an unparalleled level of comfort and safety in many ports around the world. Perhaps the most telling element of its lead over Carnival lies in the company's swift return to positive operating cash flow. Unlike its competitors, the cruise giant reported positive cash flow as recently as its July earnings report. In the same month, it also announced full-fleet operation, returning as many ships to the water for bookings as it had prior to scaling back in early 2020.
Source Fool.com
