Critical Survey: Airbnb (NASDAQ:ABNB) & Caesars Entertainment (NASDAQ:CZR)

Caesars Entertainment (NASDAQ:CZRGet Free Report) and Airbnb (NASDAQ:ABNBGet Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Profitability

This table compares Caesars Entertainment and Airbnb’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Caesars Entertainment -2.12% -5.76% -0.75%
Airbnb 22.03% 32.14% 10.95%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Caesars Entertainment and Airbnb, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caesars Entertainment 1 7 11 1 2.60
Airbnb 5 21 11 3 2.30

Caesars Entertainment currently has a consensus target price of $35.39, suggesting a potential upside of 52.64%. Airbnb has a consensus target price of $143.31, suggesting a potential upside of 22.69%. Given Caesars Entertainment’s stronger consensus rating and higher possible upside, equities analysts clearly believe Caesars Entertainment is more favorable than Airbnb.

Insider & Institutional Ownership

91.8% of Caesars Entertainment shares are owned by institutional investors. Comparatively, 80.8% of Airbnb shares are owned by institutional investors. 1.0% of Caesars Entertainment shares are owned by insiders. Comparatively, 27.9% of Airbnb shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Caesars Entertainment has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares Caesars Entertainment and Airbnb”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Caesars Entertainment $11.25 billion 0.42 -$278.00 million ($1.15) -20.16
Airbnb $11.10 billion 6.48 $2.65 billion $4.21 27.74

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

Summary

Airbnb beats Caesars Entertainment on 9 of the 14 factors compared between the two stocks.

About Caesars Entertainment

(Get Free Report)

Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.

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.

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