Reviewing Airbnb (NASDAQ:ABNB) and Carnival (NYSE:CCL)

Airbnb (NASDAQ:ABNB) and Carnival (NYSE:CCL) are both large-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airbnb	22.03%	32.14%	10.95%
Carnival	10.07%	27.86%	5.64%

Analyst Ratings

This is a summary of current recommendations for Airbnb and Carnival, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	5	20	11	3	2.31
Carnival	0	8	17	1	2.73

Airbnb currently has a consensus target price of $143.31, indicating a potential upside of 17.45%. Carnival has a consensus target price of $33.00, indicating a potential upside of 26.96%. Given Carnival’s stronger consensus rating and higher possible upside, analysts clearly believe Carnival is more favorable than Airbnb.

Earnings and Valuation

This table compares Airbnb and Carnival”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$11.10 billion	6.77	$2.65 billion	$4.21	28.98
Carnival	$26.23 billion	1.16	$1.92 billion	$1.92	13.54

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

Insider and Institutional Ownership

80.8% of Airbnb shares are owned by institutional investors. Comparatively, 67.2% of Carnival shares are owned by institutional investors. 27.8% of Airbnb shares are owned by company insiders. Comparatively, 7.6% of Carnival shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Airbnb has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Carnival has a beta of 2.67, indicating that its stock price is 167% more volatile than the S&P 500.

Summary

Airbnb beats Carnival on 10 of the 15 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 Carnival

Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.