Analyzing Airbnb In Comparison To Competitors In Hotels, Restaurants & Leisure Industry
In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) in relation to its major competitors in the Hotels, Restaurants & Leisure industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate company's performance in the industry.
Airbnb Background
Airbnb is the world's largest online alternative accommodation travel agency; it also offers booking services for boutique hotels, experiences, and hotel-like services. Airbnb's platform offers over 9 million active accommodation listings. Listings from the company's 5 million-plus hosts are spread over almost every country in the world. In 2025, 42% of revenue was from North America, 39% from Europe, the Middle East, and Africa, 10% from Latin America, and 9% from Asia-Pacific. Transaction fees for online bookings account for all its revenue.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Airbnb Inc | 37.33 | 12.36 | 7.57 | 10.57% | $0.93 | $2.98 | 16.54% |
| Royal Caribbean Group | 17.34 | 7.33 | 4.08 | 11.25% | $1.85 | $2.29 | 6.48% |
| Viking Holdings Ltd | 26.83 | 22.20 | 5.19 | 44.1% | $0.76 | $1.0 | 16.49% |
| Carnival Corporation Ltd | 11.67 | 2.51 | 1.33 | 14.14% | $2.98 | $3.81 | 3.46% |
| Expedia Group Inc | 16.88 | 26.65 | 2.17 | 98.38% | $1.32 | $3.91 | 13.97% |
| Hyatt Hotels Corp | 198.99 | 4.59 | 2.14 | 3.37% | $0.33 | $0.39 | 1.16% |
| Norwegian Cruise Line Holdings Ltd | 9.30 | 2.74 | 0.74 | 8.89% | $0.69 | $1.05 | 4.89% |
| Choice Hotels International Inc | 14.64 | 32.73 | 2.94 | 45.84% | $0.13 | $0.22 | 3.36% |
| Hilton Grand Vacations Inc | 19.62 | 2.44 | 0.56 | 1.04% | $0.16 | $0.35 | 7.27% |
| Average | 39.41 | 12.65 | 2.39 | 28.38% | $1.03 | $1.63 | 7.13% |
By thoroughly analyzing Airbnb, we can discern the following trends:
The Price to Earnings ratio of 37.33 is 0.95x lower than the industry average, indicating potential undervaluation for the stock.
The current Price to Book ratio of 12.36, which is 0.98x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
The stock's relatively high Price to Sales ratio of 7.57, surpassing the industry average by 3.17x, may indicate an aspect of overvaluation in terms of sales performance.
With a Return on Equity (ROE) of 10.57% that is 17.81% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $930 Million, which is 0.9x below the industry average, potentially indicating lower profitability or financial challenges.
With higher gross profit of $2.98 Billion, which indicates 1.83x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
The company's revenue growth of 16.54% is notably higher compared to the industry average of 7.13%, showcasing exceptional sales performance and strong demand for its products or services.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When comparing Airbnb with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
Among its top 4 peers, Airbnb has a stronger financial position with a lower debt-to-equity ratio of 0.32.
This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively by investors.
Key Takeaways
For Airbnb, the PE and PB ratios are low compared to peers in the Hotels, Restaurants & Leisure industry, indicating potential undervaluation. However, the high PS ratio suggests that investors are willing to pay a premium for each dollar of Airbnb's revenue. In terms of ROE, EBITDA, gross profit, and revenue growth, Airbnb lags behind its industry peers, signaling lower profitability and growth potential.
This article was generated by Benzinga's automated content engine and reviewed by an editor.