Royal Caribbean Cruises Outshines MGM Resorts as the Better Consumer Stock for 2026

Analyst
โดย Motley Fool·Read original
Summary · why it matters

Royal Caribbean Cruises is the stronger buy among consumer discretionary stocks in 2026, according to a Motley Fool analysis comparing it with MGM Resorts International. Royal Caribbean reported fiscal 2025 revenue of approximately $17.9 billion, an 8.8% increase, and net income of about $4.3 billion, yielding a net margin of roughly 23.8%. In contrast, MGM Resorts posted revenue of nearly $17.5 billion with only 1.7% growth and a net margin of about 1.2%, weighed down by softening Las Vegas performance and a trimmed outlook at its BetMGM joint venture. Royal Caribbean also benefits from strong forward bookings, with roughly two-thirds of 2026 capacity already reserved at record prices, and projects double-digit earnings growth. While Royal Caribbean carries a lower forward price-to-earnings ratio of 18.3 times versus MGM's 28.9 times, MGM trades at a cheaper price-to-sales ratio of 0.7 times compared to Royal Caribbean's 4.8 times.

Impact on stocks 2

Consumer Discretionary± Mixed · 2 stocks
MGM Resorts International
MGM
▼ NegativeDemandrelevance

MGM Resorts reported weak revenue growth (1.7%), softening Las Vegas performance, and a trimmed BetMGM outlook, indicating lower end-customer demand.

Royal Caribbean Cruises Ltd
RCL
▲ PositiveDemandrelevance

Royal Caribbean reported strong revenue growth (8.8%), record forward bookings with two-thirds of 2026 capacity reserved at record prices, and double-digit earnings growth.

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