United Parks & Resorts (NYSE:PRKS) versus Airbnb (NASDAQ:ABNB) Critical Survey

Airbnb (NASDAQ:ABNB) and United Parks & Resorts (NYSE:PRKS) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Risk and Volatility

Airbnb has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, United Parks & Resorts has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Airbnb and United Parks & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbnb	19.90%	31.24%	10.16%
United Parks & Resorts	9.09%	-35.46%	5.63%

Valuation and Earnings

This table compares Airbnb and United Parks & Resorts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$12.24 billion	6.56	$2.51 billion	$4.06	32.83
United Parks & Resorts	$1.66 billion	1.14	$168.35 million	$2.65	15.18

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Airbnb and United Parks & Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	1	13	21	2	2.65
United Parks & Resorts	2	6	4	0	2.17

Airbnb presently has a consensus price target of $157.67, indicating a potential upside of 18.27%. United Parks & Resorts has a consensus price target of $47.20, indicating a potential upside of 17.33%. Given Airbnb’s stronger consensus rating and higher possible upside, research analysts plainly believe Airbnb is more favorable than United Parks & Resorts.

Institutional and Insider Ownership

80.8% of Airbnb shares are owned by institutional investors. 27.2% of Airbnb shares are owned by company insiders. Comparatively, 1.2% of United Parks & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Airbnb beats United Parks & Resorts on 15 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 United Parks & Resorts

United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.