H.I.S. (OTCMKTS:HISJF) versus Airbnb (NASDAQ:ABNB) Critical Review

Airbnb (NASDAQ:ABNB) and H.I.S. (OTCMKTS:HISJF) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Insider and Institutional Ownership

80.8% of Airbnb shares are owned by institutional investors. 27.2% of Airbnb shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Airbnb and H.I.S.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbnb	19.90%	31.24%	10.16%
H.I.S.	1.17%	13.38%	2.20%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Airbnb and H.I.S., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	1	13	23	2	2.67
H.I.S.	0	0	0	0	0.00

Airbnb currently has a consensus target price of $158.36, suggesting a potential upside of 6.20%. Given Airbnb’s stronger consensus rating and higher probable upside, analysts plainly believe Airbnb is more favorable than H.I.S..

Volatility and Risk

Airbnb has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, H.I.S. has a beta of -0.06, indicating that its share price is 106% less volatile than the S&P 500.

Valuation and Earnings

This table compares Airbnb and H.I.S.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$12.24 billion	7.34	$2.51 billion	$4.06	36.73
H.I.S.	$2.50 billion	N/A	$31.62 million	$0.40	32.72

Airbnb has higher revenue and earnings than H.I.S.. H.I.S. 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 H.I.S. on 14 of the 14 factors compared between the two stocks.

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.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.