In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) against its key competitors in the Hotels, Restaurants & Leisure industry. By examining key 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 | 37.27 | 12.34 | 7.56 | 10.57% | $0.93 | $2.98 | 16.54% |
| Royal Caribbean Group | 17.38 | 7.35 | 4.09 | 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 | 11.51 | 2.48 | 1.31 | 14.14% | $2.98 | $3.81 | 3.46% |
| Expedia Group Inc | 16.99 | 26.82 | 2.18 | 98.38% | $1.32 | $3.91 | 13.97% |
| Hyatt Hotels Corp | 196.83 | 4.54 | 2.12 | 3.37% | $0.33 | $0.39 | 1.16% |
| Norwegian Cruise Line Holdings Ltd | 9.39 | 2.76 | 0.75 | 8.89% | $0.69 | $1.05 | 4.89% |
| Choice Hotels International Inc | 14.85 | 33.18 | 2.98 | 45.84% | $0.13 | $0.22 | 3.36% |
| Hilton Grand Vacations Inc | 19.64 | 2.44 | 0.56 | 1.04% | $0.16 | $0.35 | 7.27% |
| Average | 39.21 | 12.75 | 2.4 | 28.38% | $1.03 | $1.63 | 7.13% |
After a detailed analysis of Airbnb, the following trends become apparent:
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The stock's Price to Earnings ratio of 37.27 is lower than the industry average by 0.95x, suggesting potential value in the eyes of market participants.
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Considering a Price to Book ratio of 12.34, which is well below the industry average by 0.97x, the stock may be undervalued based on its book value compared to its peers.
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The stock's relatively high Price to Sales ratio of 7.56, surpassing the industry average by 3.15x, may indicate an aspect of overvaluation in terms of sales performance.
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The Return on Equity (ROE) of 10.57% is 17.81% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
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With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $930 Million, which is 0.9x below the industry average, the company may face lower profitability or financial challenges.
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With higher gross profit of $2.98 Billion, which indicates 1.83x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
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With a revenue growth of 16.54%, which surpasses the industry average of 7.13%, the company is demonstrating robust sales expansion and gaining market share.
Debt To Equity Ratio
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.
When examining Airbnb in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
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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.
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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 0.32.
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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