Reviewing Airbnb (NASDAQ:ABNB) & OneSpaWorld (NASDAQ:OSW)

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

Valuation & Earnings

This table compares Airbnb and OneSpaWorld”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	6.47	$2.51 billion	$4.06	32.35
OneSpaWorld	$961.00 million	2.53	$71.62 million	$0.75	31.95

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

Institutional and Insider Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are held by institutional investors. 27.2% of Airbnb shares are held by insiders. Comparatively, 3.6% of OneSpaWorld shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Airbnb and OneSpaWorld, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	1	13	22	2	2.66
OneSpaWorld	0	1	6	1	3.00

Airbnb currently has a consensus target price of $157.76, suggesting a potential upside of 20.11%. OneSpaWorld has a consensus target price of $28.20, suggesting a potential upside of 17.70%. Given Airbnb’s higher probable upside, equities analysts clearly believe Airbnb is more favorable than OneSpaWorld.

Profitability

This table compares Airbnb and OneSpaWorld’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%
OneSpaWorld	7.85%	18.00%	13.77%

Risk and Volatility

Airbnb has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Summary

Airbnb beats OneSpaWorld on 12 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 OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.