Expedia Group vs Royal Caribbean Group
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KIRA’s take AI analyst
I put Expedia Group and Royal Caribbean Group side by side, using each one’s latest annual report. Here is what stands out:
- Royal Caribbean Group is the larger business, with $17.9B of revenue in fiscal 2025 against $14.7B for Expedia Group.
- Royal Caribbean Group grew revenue faster (8.8%, against 7.6%).
- Royal Caribbean Group kept more of each dollar of sales as operating profit (27.4% operating margin, against 12.7%).
- Expedia Group turned more of its sales into free cash flow (21.1% FCF margin, against 6.9%).
- Expedia Group earned a higher return on the capital invested in it (40.5%, against 16.6%).
- Investors pay more for each dollar of Expedia Group’s earnings: a P/E of 18.0x against 17.1x for Royal Caribbean Group.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Expedia Group
EXPE
5/10
FCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Royal Caribbean Group
RCL
5/10
Revenue growth5-year growthOperating marginNet marginPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | EXPE FY25 | RCL FY25 |
|---|---|---|
| Size | ||
| Market cap | $35.4B | $74.1B |
| Revenue | $14.7B | $17.9B |
| Free cash flow | $3.1B | $1.2B |
| Net income | $1.3B | $4.3B |
| Growth | ||
| Revenue growth | 7.6% | 8.8% |
| 5-year growth | 23.2% | 52.0% |
| Share count change | −4.3% | −1.8% |
| Profitability | ||
| Gross margin | — | 49.4% |
| Operating margin | 12.7% | 27.4% |
| Net margin | 8.8% | 23.8% |
| FCF margin | 21.1% | 6.9% |
| Return on capital | 40.5% | 16.6% |
| Return on equity | 91.1% | 48.5% |
| Balance sheet | ||
| Net debt | $428M | $20.5B |
| Net debt / EBITDA | 0.2x | 3.1x |
| Dividends and buybacks | $2.1B | $2.0B |
| Valuation & quality | ||
| P/E | 18.0x | 17.1x |
| Piotroski F-score | 8 | 9 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.