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.

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 33.15 10.43 6.55 2.02% $0.09 $2.1 17.87%
Royal Caribbean Group 15.88 7.12 3.86 9.48% $1.72 $2.21 11.33%
Viking Holdings Ltd 31.19 36.02 5.63 -5.1% $0.1 $0.36 17.47%
Carnival Corporation Ltd 11.53 2.78 1.38 2.04% $1.27 $2.23 6.11%
Expedia Group Inc 19.27 45.45 1.87 -0.65% $0.36 $3.05 14.66%
Norwegian Cruise Line Holdings Ltd 13.28 3.11 0.79 4.51% $0.56 $0.95 9.57%
Choice Hotels International Inc 15.07 36.91 3.22 12.69% $0.08 $0.16 2.32%
Global Business Travel Group Inc 58.94 3.06 1.61 3.23% $0.1 $0.49 35.27%
Hilton Grand Vacations Inc 26.47 3.26 0.84 5.31% $0.22 $0.33 11.93%
Average 23.95 17.21 2.4 3.94% $0.55 $1.22 13.58%

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

  • The Price to Earnings ratio of 33.15 for this company is 1.38x above the industry average, indicating a premium valuation associated with the stock.

  • Considering a Price to Book ratio of 10.43, which is well below the industry average by 0.61x, the stock may be undervalued based on its book value compared to its peers.

  • With a relatively high Price to Sales ratio of 6.55, which is 2.73x the industry average, the stock might be considered overvalued based on sales performance.

  • With a Return on Equity (ROE) of 2.02% that is 1.92% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.

  • The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $90 Million, which is 0.16x below the industry average. This potentially indicates lower profitability or financial challenges.

  • The company has higher gross profit of $2.1 Billion, which indicates 1.72x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company is experiencing remarkable revenue growth, with a rate of 17.87%, outperforming the industry average of 13.58%.

Debt To Equity Ratio

debt to equity

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.

By evaluating Airbnb against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:

  • In terms of the debt-to-equity ratio, Airbnb has a lower level of debt compared to its top 4 peers, indicating a stronger financial position.

  • This implies that the company relies less on debt financing and has a more favorable balance between debt and equity with a lower debt-to-equity ratio of 0.33.

Key Takeaways

The high PE ratio of Airbnb suggests that investors are willing to pay a premium for its earnings compared to its peers in the Hotels, Restaurants & Leisure industry. The low PB ratio indicates that Airbnb's stock price is relatively undervalued based on its book value. With a high PS ratio, Airbnb's revenue is being valued more richly compared to its industry peers. On the other hand, the low ROE and EBITDA suggest that Airbnb may not be utilizing its assets efficiently. The high gross profit and revenue growth indicate strong performance in generating profits and increasing sales compared to its industry counterparts.

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