In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Airbnb (NASDAQ:ABNB) alongside its primary competitors in the Hotels, Restaurants & Leisure industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to 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 35.63 10.50 7.31 4.06% $0.27 $2.29 12.02%
Royal Caribbean Group 18.08 7.54 4.31 7.49% $1.57 $2.02 13.21%
Carnival Corp 12.78 3.08 1.53 2.04% $1.27 $2.23 6.11%
Viking Holdings Ltd 33.50 34.25 5.91 31.67% $0.45 $0.71 27.76%
Expedia Group Inc 27.85 26.08 2.45 15.64% $0.59 $3.2 11.4%
Norwegian Cruise Line Holdings Ltd 22.02 4.18 0.98 0.65% $0.55 $0.92 6.4%
Choice Hotels International Inc 15.45 30.97 3.56 38.3% $0.12 $0.21 0.1%
Hilton Grand Vacations Inc 55.35 3.11 0.89 3.59% $0.25 $2.34 3.82%
Global Business Travel Group Inc 27.86 2 1.11 5.29% $0.14 $0.45 34.01%
Average 26.61 13.9 2.59 13.08% $0.62 $1.51 12.85%

After a detailed analysis of Airbnb, the following trends become apparent:

  • Notably, the current Price to Earnings ratio for this stock, 35.63, is 1.34x above the industry norm, reflecting a higher valuation relative to the industry.

  • The current Price to Book ratio of 10.5, which is 0.76x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

  • The Price to Sales ratio of 7.31, which is 2.82x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • The company has a lower Return on Equity (ROE) of 4.06%, which is 9.02% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.

  • Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $270 Million, which is 0.44x below the industry average, potentially indicating lower profitability or financial challenges.

  • Compared to its industry, the company has higher gross profit of $2.29 Billion, which indicates 1.52x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 12.02% is significantly below the industry average of 12.85%. This suggests a potential struggle in generating increased sales volume.

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:

  • Among its top 4 peers, Airbnb has a stronger financial position with a lower debt-to-equity ratio of 0.25.

  • 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 in the Hotels, Restaurants & Leisure industry, the PE ratio is high compared to peers, indicating potential overvaluation. The PB ratio is low, suggesting a possible undervaluation based on its book value. The PS ratio is high, signaling rich valuation relative to sales. In terms of ROE and EBITDA, Airbnb shows lower profitability metrics. However, the company demonstrates strong gross profit margins compared to industry peers. Additionally, Airbnb's revenue growth rate is lower, potentially impacting its competitive position within the sector.

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