Critical Survey: Airbnb (ABNB) & The Competition

Airbnb (NASDAQ:ABNB) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its rivals? We will compare Airbnb to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Profitability

This table compares Airbnb and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbnb	20.45%	33.38%	10.67%
Airbnb Competitors	2.45%	-40.43%	2.13%

Valuation and Earnings

This table compares Airbnb and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Airbnb	$12.24 billion	$2.51 billion	35.02
Airbnb Competitors	$3.42 billion	$250.20 million	-161.95

Airbnb has higher revenue and earnings than its rivals. Airbnb is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for Airbnb and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	1	15	27	2	2.67
Airbnb Competitors	3812	17303	25622	907	2.50

Airbnb presently has a consensus target price of $195.46, indicating a potential upside of 4.33%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 59.09%. Given Airbnb’s rivals higher possible upside, analysts clearly believe Airbnb has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

80.8% of Airbnb shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 27.2% of Airbnb shares are owned by company insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Airbnb has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Airbnb’s rivals have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Summary

Airbnb beats its rivals on 11 of the 13 factors compared.

About Airbnb

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.