In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) in relation to its major competitors in the Hotels, Restaurants & Leisure industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate 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 | 33.19 | 10.45 | 6.56 | 2.02% | $0.09 | $2.1 | 17.87% |
| Royal Caribbean Group | 16.60 | 7.44 | 4.03 | 9.48% | $1.72 | $2.21 | 11.33% |
| Viking Holdings Ltd | 33.10 | 38.23 | 5.98 | -5.1% | $0.1 | $0.36 | 17.47% |
| Carnival Corporation Ltd | 11.90 | 2.87 | 1.42 | 2.04% | $1.27 | $2.23 | 6.11% |
| Expedia Group Inc | 19.96 | 47.07 | 1.94 | -0.65% | $0.36 | $3.05 | 14.66% |
| Norwegian Cruise Line Holdings Ltd | 14.96 | 3.50 | 0.90 | 4.51% | $0.56 | $0.95 | 9.57% |
| Global Business Travel Group Inc | 58.44 | 3.03 | 1.60 | 3.23% | $0.1 | $0.49 | 35.27% |
| Choice Hotels International Inc | 14.25 | 34.90 | 3.04 | 12.69% | $0.08 | $0.16 | 2.32% |
| Hilton Grand Vacations Inc | 26.25 | 3.19 | 0.83 | 5.31% | $0.22 | $0.33 | 11.93% |
| Average | 24.43 | 17.53 | 2.47 | 3.94% | $0.55 | $1.22 | 13.58% |
When conducting a detailed analysis of Airbnb, the following trends become clear:
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Notably, the current Price to Earnings ratio for this stock, 33.19, is 1.36x above the industry norm, reflecting a higher valuation relative to the industry.
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The current Price to Book ratio of 10.45, which is 0.6x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
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The stock's relatively high Price to Sales ratio of 6.56, surpassing the industry average by 2.66x, may indicate an aspect of overvaluation in terms of sales performance.
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The Return on Equity (ROE) of 2.02% is 1.92% below the industry average, suggesting 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 $90 Million, which is 0.16x below the industry average. This potentially indicates lower profitability or financial challenges.
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With higher gross profit of $2.1 Billion, which indicates 1.72x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
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The company's revenue growth of 17.87% is notably higher compared to the industry average of 13.58%, showcasing exceptional sales performance and strong demand for its products or services.
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.
By considering the Debt-to-Equity ratio, Airbnb can be compared to its top 4 peers, leading to the following observations:
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When comparing the debt-to-equity ratio, Airbnb is in a stronger financial position compared to its top 4 peers.
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The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.33.
Key Takeaways
The high PE ratio of Airbnb suggests that investors are willing to pay a premium for its earnings compared to its peers in the Hotels, Restaurants & Leisure industry. The low PB ratio indicates that Airbnb's stock price is relatively undervalued based on its book value. With a high PS ratio, Airbnb's revenue is being valued at a premium compared to industry peers. On the other hand, the low ROE and EBITDA suggest that Airbnb may not be utilizing its assets efficiently. The high gross profit margin indicates strong profitability, while the high revenue growth suggests potential for future expansion.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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