In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) and its primary competitors in the Hotels, Restaurants & Leisure industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide 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 | 34.15 | 11.31 | 6.93 | 10.57% | $0.93 | $2.98 | 16.54% |
| Royal Caribbean Group | 14.22 | 6.02 | 3.35 | 11.25% | $1.85 | $2.29 | 6.48% |
| Viking Holdings Ltd | 26.68 | 22.07 | 5.16 | 44.1% | $0.76 | $1.0 | 16.49% |
| Expedia Group Inc | 16.29 | 25.72 | 2.09 | 98.38% | $1.32 | $3.91 | 13.97% |
| Carnival Corporation Ltd | 9.82 | 2.30 | 1.15 | 4.13% | $1.56 | $2.44 | 5.29% |
| Hyatt Hotels Corp | 194.17 | 4.48 | 2.09 | 3.37% | $0.33 | $0.39 | 1.16% |
| Norwegian Cruise Line Holdings Ltd | 8.59 | 2.53 | 0.68 | 8.89% | $0.69 | $1.05 | 4.89% |
| Global Business Travel Group Inc | 59.12 | 3.02 | 1.53 | 0.92% | $0.1 | $0.51 | 37.88% |
| Choice Hotels International Inc | 14.40 | 32.18 | 2.89 | 45.84% | $0.13 | $0.22 | 3.36% |
| Hilton Grand Vacations Inc | 20.23 | 2.51 | 0.58 | 1.04% | $0.16 | $0.35 | 7.27% |
| Average | 40.39 | 11.2 | 2.17 | 24.21% | $0.77 | $1.35 | 10.75% |
By carefully studying Airbnb, we can deduce the following trends:
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The stock's Price to Earnings ratio of 34.15 is lower than the industry average by 0.85x, suggesting potential value in the eyes of market participants.
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With a Price to Book ratio of 11.31, which is 1.01x the industry average, Airbnb might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
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With a relatively high Price to Sales ratio of 6.93, which is 3.19x the industry average, the stock might be considered overvalued based on sales performance.
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The Return on Equity (ROE) of 10.57% is 13.64% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
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Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $930 Million, which is 1.21x above the industry average, indicating stronger profitability and robust cash flow generation.
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The company has higher gross profit of $2.98 Billion, which indicates 2.21x above the industry average, indicating stronger profitability and higher earnings from its core operations.
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The company's revenue growth of 16.54% is notably higher compared to the industry average of 10.75%, showcasing exceptional sales performance and strong demand for its products or services.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to equity.
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 evaluating Airbnb alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
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Airbnb is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.32.
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This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
Key Takeaways
For Airbnb in the Hotels, Restaurants & Leisure industry, the PE ratio is low compared to peers, indicating potential undervaluation. The high PB ratio suggests investors are willing to pay a premium for its assets. The high PS ratio implies strong revenue generation relative to market value. In terms of ROE, Airbnb lags behind peers, indicating lower profitability from shareholder equity. The high EBITDA and gross profit signify robust operational performance, while the high revenue growth suggests strong top-line expansion compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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