When Carnival (NYSE: CCL) reported third-quarter 2023 earnings it was happy to note that it had record-level performance in some key metrics. So, in many ways, its business isn't just back to pre-pandemic levels, but exceeding them. Yet, unlike peer Royal Caribbean (NYSE: RCL), Carnival's stock hasn't recovered anywhere near pre-pandemic levels. Here's one important factor that helps explain the situation and something that investors should monitor.

Carnival's stock price is up some 60% over the past year. That's a huge price increase in a very short period, but the shares are still off by roughly two-thirds from where they started in 2020 before the coronavirus pandemic hit. By comparison, Royal Caribbean is up 90% over the past year and has clawed back to within striking distance of its pre-pandemic level, down just 9% or so from where it started in 2020.

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Source Fool.com