Critical Survey: Airbnb (ABNB) and Its Competitors

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

Analyst Ratings

This is a summary of recent recommendations for Airbnb and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	2	13	27	2	2.66
Airbnb Competitors	3793	17208	25479	901	2.50

Airbnb currently has a consensus target price of $182.65, indicating a potential upside of 9.40%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 59.39%. Given Airbnb’s rivals higher probable upside, analysts plainly 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	20.45%	33.38%	10.67%
Airbnb Competitors	2.30%	-40.19%	2.09%

Insider and Institutional Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 27.2% of Airbnb shares are held by insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Airbnb	$12.24 billion	$2.51 billion	37.95
Airbnb Competitors	$3.81 billion	$247.14 million	-153.92

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.

Risk and Volatility

Airbnb has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Airbnb’s rivals have a beta of 1.62, meaning that their average share price is 62% more volatile than the S&P 500.

Summary

Airbnb beats its rivals on 11 of the 13 factors compared.

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.