Comparing Airbnb (ABNB) & Its Rivals

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

Institutional and Insider Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 27.2% of Airbnb shares are held by company insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Airbnb has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Airbnb’s rivals have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Airbnb and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	2	13	28	1	2.64
Airbnb Competitors	3807	17284	25595	906	2.50

Airbnb currently has a consensus target price of $193.85, suggesting a potential upside of 2.03%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 59.05%. Given Airbnb’s rivals higher probable upside, analysts clearly believe Airbnb has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airbnb	23.02%	40.71%	12.37%
Airbnb Competitors	3.93%	-40.66%	2.07%

Earnings and Valuation

This table compares Airbnb and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Airbnb	$12.24 billion	$2.51 billion	43.18
Airbnb Competitors	$3.43 billion	$250.20 million	-155.62

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

Summary

Airbnb beats its rivals 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.