Head to Head Survey: Airbnb (ABNB) versus Its Competitors

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

Risk & Volatility

Airbnb has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Airbnb’s peers have a beta of 1.62, suggesting that their average stock price is 62% more volatile than the S&P 500.

Institutional and Insider Ownership

80.8% of Airbnb shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 27.2% of Airbnb shares are owned by insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Airbnb and its peers’ 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	2.30%	-40.19%	2.09%

Analyst Ratings

This is a breakdown of current ratings and price targets for Airbnb and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	2	13	27	2	2.66
Airbnb Competitors	3793	17208	25479	901	2.50

Airbnb currently has a consensus target price of $182.65, indicating a potential upside of 9.40%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 59.39%. Given Airbnb’s peers higher possible upside, analysts clearly believe Airbnb has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Airbnb and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Airbnb	$12.24 billion	$2.51 billion	37.95
Airbnb Competitors	$3.81 billion	$247.14 million	-153.92

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

Summary

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

Airbnb Company Profile

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.