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In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) in relation to its major competitors in the Hotels, Restaurants & Leisure industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer valuable insights for investors and shed light on company's performance within the industry.
Started in 2008, Airbnb is the world's largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences. Airbnb's platform offered 7.7 million active accommodation listings as of Dec. 31, 2023. Listings from the company's over 5 million hosts are spread over almost every country in the world. In 2023, 50% of revenue was from the North American region. 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 | 19.82 | 11.90 | 9.51 | 3.29% | $0.12 | $1.66 | 17.82% |
| Royal Caribbean Group | 19.80 | 7.76 | 3.05 | 7.29% | $1.18 | $1.67 | 29.18% |
| Trip.com Group Ltd | 22.74 | 1.87 | 5.22 | 3.45% | $4.94 | $9.67 | 29.43% |
| Expedia Group Inc | 23.41 | 18.36 | 1.38 | -11.14% | $0.12 | $2.53 | 8.41% |
| Hyatt Hotels Corp | 22.64 | 4.04 | 2.33 | 14.46% | $0.68 | $0.31 | 2.02% |
| H World Group Ltd | 21.32 | 6.32 | 3.61 | 5.4% | $1.39 | $1.71 | 17.81% |
| MakeMyTrip Ltd | 45.90 | 7.84 | 12.07 | 16.8% | $0.02 | $0.15 | -5.29% |
| Norwegian Cruise Line Holdings Ltd | 21.70 | 20.83 | 0.85 | 5.24% | $0.48 | $0.8 | 20.27% |
| Choice Hotels International Inc | 24.16 | 807.81 | 3.67 | 145.78% | $0.08 | $0.14 | -0.25% |
| Hilton Grand Vacations Inc | 19.04 | 2.09 | 1.05 | -0.19% | $0.13 | $0.32 | 23.77% |
| Marriott Vacations Worldwide Corp | 16.44 | 1.32 | 0.81 | 1.97% | $0.16 | $0.47 | 2.22% |
| Atour Lifestyle Holdings Ltd | 17.93 | 7.48 | 3.28 | 11.68% | $0.35 | $0.59 | 89.72% |
| Target Hospitality Corp | 7.60 | 2.80 | 2.10 | 5.42% | $0.05 | $0.05 | -27.84% |
| GreenTree Hospitality Group Ltd | 7.04 | 1.31 | 1.17 | -2.08% | $0.03 | $0.16 | 3.19% |
| Average | 20.75 | 68.45 | 3.12 | 15.7% | $0.74 | $1.43 | 14.82% |
After examining Airbnb, the following trends can be inferred:
With a Price to Earnings ratio of 19.82, which is 0.96x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
Considering a Price to Book ratio of 11.9, which is well below the industry average by 0.17x, the stock may be undervalued based on its book value compared to its peers.
With a relatively high Price to Sales ratio of 9.51, which is 3.05x the industry average, the stock might be considered overvalued based on sales performance.
The Return on Equity (ROE) of 3.29% is 12.41% below the industry average, suggesting 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 $120 Million, which is 0.16x below the industry average, potentially indicating lower profitability or financial challenges.
The company has higher gross profit of $1.66 Billion, which indicates 1.16x above the industry average, indicating stronger profitability and higher earnings from its core operations.
With a revenue growth of 17.82%, which surpasses the industry average of 14.82%, the company is demonstrating robust sales expansion and gaining market share.
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
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.
In terms of the Debt-to-Equity ratio, Airbnb stands in comparison with its top 4 peers, leading to the following comparisons:
Airbnb demonstrates a stronger financial position compared to its top 4 peers in the sector.
With a lower debt-to-equity ratio of 0.26, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
For Airbnb in the Hotels, Restaurants & Leisure industry, the PE and PB ratios suggest that the company is undervalued compared to its peers. However, the high PS ratio indicates that investors are willing to pay a premium for its revenue. In terms of ROE and EBITDA, Airbnb lags behind its competitors, reflecting lower profitability and operational efficiency. On the positive side, the company's high gross profit and revenue growth demonstrate strong performance and potential for future success within the industry sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Posted In: ABNB
