Shake Shack (NYSE:SHAK) vs. Airbnb (NASDAQ:ABNB) Head-To-Head Comparison

Airbnb (NASDAQ:ABNB – Get Free Report) and Shake Shack (NYSE:SHAK – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Airbnb and Shake Shack”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Airbnb $12.24 billion 8.63 $2.51 billion $4.40 40.08
Shake Shack $1.55 billion 2.00 $45.72 million $0.94 77.36

Airbnb has higher revenue and earnings than Shake Shack. Airbnb is trading at a lower price-to-earnings ratio than Shake Shack, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Airbnb has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Shake Shack has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Airbnb and Shake Shack, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Airbnb 2 13 27 2 2.66
Shake Shack 0 12 16 0 2.57

Airbnb presently has a consensus target price of $182.65, suggesting a potential upside of 3.56%. Shake Shack has a consensus target price of $87.00, suggesting a potential upside of 19.64%. Given Shake Shack’s higher possible upside, analysts plainly believe Shake Shack is more favorable than Airbnb.

Institutional & Insider Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 86.1% of Shake Shack shares are held by institutional investors. 27.2% of Airbnb shares are held by company insiders. Comparatively, 8.3% of Shake Shack shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Airbnb and Shake Shack’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Airbnb 20.45% 33.38% 10.67%
Shake Shack 2.56% 9.29% 2.71%

Summary

Airbnb beats Shake Shack on 11 of the 15 factors compared between the two stocks.

About Airbnb

(Get Free Report)

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.

About Shake Shack

(Get Free Report)

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.

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