In the fast-paced 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) in comparison to its major competitors within the Hotels, Restaurants & Leisure industry. By analyzing crucial 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 37.08 12.28 7.52 10.57% $0.93 $2.98 16.54%
Royal Caribbean Group 17.16 7.26 4.04 11.25% $1.85 $2.29 6.48%
Viking Holdings Ltd 26.76 22.14 5.18 44.1% $0.76 $1.0 16.49%
Carnival Corporation Ltd 11.35 2.44 1.30 14.14% $2.98 $3.81 3.46%
Expedia Group Inc 16.67 26.31 2.14 98.38% $1.32 $3.91 13.97%
Hyatt Hotels Corp 196.17 4.53 2.11 3.37% $0.33 $0.39 1.16%
Norwegian Cruise Line Holdings Ltd 9.18 2.70 0.73 8.89% $0.69 $1.05 4.89%
Choice Hotels International Inc 14.52 32.45 2.91 45.84% $0.13 $0.22 3.36%
Hilton Grand Vacations Inc 19.81 2.46 0.56 1.04% $0.16 $0.35 7.27%
Average 38.95 12.54 2.37 28.38% $1.03 $1.63 7.13%

Upon analyzing Airbnb, the following trends can be observed:

  • At 37.08, the stock's Price to Earnings ratio is 0.95x less than the industry average, suggesting favorable growth potential.

  • The current Price to Book ratio of 12.28, which is 0.98x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

  • The stock's relatively high Price to Sales ratio of 7.52, surpassing the industry average by 3.17x, may indicate an aspect of overvaluation in terms of 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.

  • Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $930 Million, which is 0.9x below the industry average, potentially indicating lower profitability or financial challenges.

  • The gross profit of $2.98 Billion is 1.83x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 16.54% exceeds the industry average of 7.13%, indicating strong sales performance and market outperformance.

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.

By analyzing Airbnb in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:

  • Among its top 4 peers, Airbnb has a stronger financial position with a lower debt-to-equity ratio of 0.32.

  • This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively by investors.

Key Takeaways

For Airbnb, the PE and PB ratios are low compared to peers in the Hotels, Restaurants & Leisure industry, indicating potential undervaluation. However, the high PS ratio suggests that investors are willing to pay a premium for each dollar of Airbnb's revenue. In terms of ROE, EBITDA, gross profit, and revenue growth, Airbnb lags behind its industry peers, signaling lower profitability and growth potential.

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