Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) in comparison to its major competitors within the Hotels, Restaurants & Leisure industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of 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 35.40 10.43 7.26 4.06% $0.27 $2.29 12.02%
Royal Caribbean Group 17.39 7.25 4.15 7.49% $1.57 $2.02 13.21%
Carnival Corp 12.05 2.91 1.44 2.04% $1.27 $2.23 6.11%
Viking Holdings Ltd 31.64 33.16 5.58 31.67% $0.45 $0.71 27.76%
Expedia Group Inc 27.91 26.13 2.45 15.64% $0.59 $3.2 11.4%
Norwegian Cruise Line Holdings Ltd 21.01 3.98 0.94 0.65% $0.55 $0.92 6.4%
Choice Hotels International Inc 15.22 30.50 3.51 38.3% $0.12 $0.21 0.1%
Hilton Grand Vacations Inc 54.38 3.05 0.88 3.59% $0.25 $2.34 3.82%
Global Business Travel Group Inc 28.18 2.02 1.12 5.29% $0.14 $0.45 34.01%
Average 25.97 13.62 2.51 13.08% $0.62 $1.51 12.85%

By carefully studying Airbnb, we can deduce the following trends:

  • Notably, the current Price to Earnings ratio for this stock, 35.4, is 1.36x above the industry norm, reflecting a higher valuation relative to the industry.

  • With a Price to Book ratio of 10.43, significantly falling below the industry average by 0.77x, it suggests undervaluation and the possibility of untapped growth prospects.

  • With a relatively high Price to Sales ratio of 7.26, which is 2.89x the industry average, the stock might be considered overvalued based on sales performance.

  • The company has a lower Return on Equity (ROE) of 4.06%, which is 9.02% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.

  • Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $270 Million, which is 0.44x below the industry average, potentially indicating lower profitability or financial challenges.

  • The company has higher gross profit of $2.29 Billion, which indicates 1.52x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company is witnessing a substantial decline in revenue growth, with a rate of 12.02% compared to the industry average of 12.85%, which indicates a challenging sales environment.

Debt To Equity Ratio

debt to equity

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.

When assessing Airbnb against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

  • Airbnb demonstrates a stronger financial position compared to its top 4 peers in the sector.

  • With a lower debt-to-equity ratio of 0.25, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.

Key Takeaways

For Airbnb in the Hotels, Restaurants & Leisure industry, the PE ratio is high compared to peers, indicating potential overvaluation. The PB ratio is low, suggesting a possible undervaluation based on its book value. The PS ratio is high, signaling rich valuation relative to sales. In terms of ROE and EBITDA, Airbnb shows lower profitability metrics. However, the company demonstrates strong gross profit margins compared to industry peers, despite slower revenue growth.

This article was generated by Benzinga's automated content engine and reviewed by an editor.