Airbnb (ABNB) versus Its Rivals Critical Review

Airbnb (NASDAQ:ABNB) is one of 52 publicly-traded companies in the “LEISURE&REC SVS” industry, but how does it weigh in compared to its competitors? We will compare Airbnb to related businesses based on the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Airbnb	$11.10 billion	$2.65 billion	33.45
Airbnb Competitors	$5.15 billion	$328.73 million	32.74

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Airbnb and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	5	16	13	2	2.33
Airbnb Competitors	529	1564	2996	49	2.50

Airbnb currently has a consensus price target of $141.23, indicating a potential upside of 6.62%. As a group, “LEISURE&REC SVS” companies have a potential upside of 19.66%. Given Airbnb’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Airbnb has less favorable growth aspects than its competitors.

Risk & Volatility

Airbnb has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Airbnb’s competitors have a beta of 0.60, suggesting that their average share price is 40% less volatile than the S&P 500.

Institutional & Insider Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 58.3% of shares of all “LEISURE&REC SVS” companies are held by institutional investors. 27.8% of Airbnb shares are held by insiders. Comparatively, 20.4% of shares of all “LEISURE&REC SVS” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airbnb	22.60%	30.91%	10.74%
Airbnb Competitors	-88.23%	-67.41%	-9.24%

Summary

Airbnb beats its competitors on 10 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.