Comparing Airbnb With Industry Competitors In Hotels, Restaurants & Leisure Industry
In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Airbnb (NASDAQ:ABNB) alongside its primary competitors in the Hotels, Restaurants & Leisure industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to investors and shed light on company's performance within 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 | 40.40 | 13.38 | 8.20 | 10.57% | $0.93 | $2.98 | 16.54% |
| Royal Caribbean Group | 17.78 | 7.52 | 4.18 | 11.25% | $1.85 | $2.29 | 6.48% |
| Viking Holdings Ltd | 28.98 | 23.98 | 5.61 | 44.1% | $0.76 | $1.0 | 16.49% |
| Expedia Group Inc | 18.92 | 29.86 | 2.43 | 98.38% | $1.32 | $3.91 | 13.97% |
| Carnival Corporation Ltd | 11.92 | 2.56 | 1.36 | 14.14% | $2.98 | $3.81 | 3.46% |
| Hyatt Hotels Corp | 217.47 | 5.02 | 2.34 | 3.37% | $0.33 | $0.39 | 1.16% |
| Norwegian Cruise Line Holdings Ltd | 9.48 | 2.79 | 0.75 | 8.89% | $0.69 | $1.05 | 4.89% |
| Choice Hotels International Inc | 16.07 | 35.92 | 3.22 | 45.84% | $0.13 | $0.22 | 3.36% |
| Hilton Grand Vacations Inc | 20.56 | 2.55 | 0.59 | 1.04% | $0.16 | $0.35 | 7.27% |
| Average | 42.65 | 13.78 | 2.56 | 28.38% | $1.03 | $1.63 | 7.13% |
When conducting a detailed analysis of Airbnb, the following trends become clear:
The Price to Earnings ratio of 40.4 is 0.95x lower than the industry average, indicating potential undervaluation for the stock.
The current Price to Book ratio of 13.38, which is 0.97x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
With a relatively high Price to Sales ratio of 8.2, which is 3.2x the industry average, the stock might be considered overvalued based on 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.
With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $930 Million, which is 0.9x below the industry average, the company may face lower profitability or financial challenges.
The company has higher gross profit of $2.98 Billion, which indicates 1.83x above the industry average, indicating 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 provides insights into the proportion of debt a company has in relation to its equity and asset value.
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.
By considering the Debt-to-Equity ratio, Airbnb can be compared to its top 4 peers, leading to the following observations:
When comparing the debt-to-equity ratio, Airbnb is in a stronger financial position compared to its top 4 peers.
The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.32.
Key Takeaways
For Airbnb in the Hotels, Restaurants & Leisure industry, the PE and PB ratios suggest the company is undervalued compared to its peers. However, the high PS ratio indicates a premium valuation based on revenue. In terms of profitability, Airbnb's low ROE and EBITDA suggest lower returns compared to industry peers. The high gross profit and revenue growth indicate strong operational performance and potential for future growth.
This article was generated by Benzinga's automated content engine and reviewed by an editor.