In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) against its key competitors in the Hotels, Restaurants & Leisure industry. By analyzing important financial metrics, market position, and growth prospects, we aim 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 | 36.62 | 12.13 | 7.43 | 10.57% | $0.93 | $2.98 | 16.54% |
| Royal Caribbean Group | 17.84 | 7.55 | 4.20 | 11.25% | $1.85 | $2.29 | 6.48% |
| Viking Holdings Ltd | 27.12 | 22.44 | 5.25 | 44.1% | $0.76 | $1.0 | 16.49% |
| Carnival Corporation Ltd | 11.71 | 2.52 | 1.34 | 14.14% | $2.98 | $3.81 | 3.46% |
| Expedia Group Inc | 16.35 | 25.81 | 2.10 | 98.38% | $1.32 | $3.91 | 13.97% |
| Hyatt Hotels Corp | 196.44 | 4.54 | 2.11 | 3.37% | $0.33 | $0.39 | 1.16% |
| Norwegian Cruise Line Holdings Ltd | 9.40 | 2.77 | 0.75 | 8.89% | $0.69 | $1.05 | 4.89% |
| Choice Hotels International Inc | 14.60 | 32.63 | 2.93 | 45.84% | $0.13 | $0.22 | 3.36% |
| Hilton Grand Vacations Inc | 19.73 | 2.45 | 0.56 | 1.04% | $0.16 | $0.35 | 7.27% |
| Average | 39.15 | 12.59 | 2.4 | 28.38% | $1.03 | $1.63 | 7.13% |
Through a thorough examination of Airbnb, we can discern the following trends:
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A Price to Earnings ratio of 36.62 significantly below the industry average by 0.94x suggests undervaluation. This can make the stock appealing for those seeking growth.
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With a Price to Book ratio of 12.13, significantly falling below the industry average by 0.96x, it suggests undervaluation and the possibility of untapped growth prospects.
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With a relatively high Price to Sales ratio of 7.43, which is 3.1x the industry average, the stock might be considered overvalued based on sales performance.
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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.
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The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $930 Million, which is 0.9x below the industry average. This potentially indicates lower profitability or financial challenges.
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Compared to its industry, the company has higher gross profit of $2.98 Billion, which indicates 1.83x 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% exceeds the industry average of 7.13%, indicating strong sales performance and market outperformance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its 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.
In light of the Debt-to-Equity ratio, a comparison between Airbnb and its top 4 peers reveals the following information:
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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 and PB ratios suggest the company is undervalued compared to its peers. However, the high PS ratio indicates a premium valuation based on revenue. In terms of profitability, Airbnb's low ROE and EBITDA suggest lower returns compared to industry peers. The high gross profit and revenue growth indicate strong operational performance and potential for future growth.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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