In the dynamic 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) and its primary competitors in the Hotels, Restaurants & Leisure industry. By closely examining key financial metrics, market position, and growth prospects, our aim is 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 32.43 10.21 6.41 2.02% $0.09 $2.1 17.87%
Royal Caribbean Group 17.22 7.72 4.19 9.48% $1.72 $2.21 11.33%
Viking Holdings Ltd 33.57 38.77 6.07 -5.1% $0.1 $0.36 17.47%
Carnival Corporation Ltd 12.22 2.95 1.46 2.04% $1.27 $2.23 6.11%
Expedia Group Inc 20.41 48.15 1.98 -0.65% $0.36 $3.05 14.66%
Norwegian Cruise Line Holdings Ltd 15.35 3.59 0.92 4.51% $0.56 $0.95 9.57%
Choice Hotels International Inc 14.67 35.95 3.13 12.69% $0.08 $0.16 2.32%
Global Business Travel Group Inc 58.44 3.03 1.60 3.23% $0.1 $0.49 35.27%
Hilton Grand Vacations Inc 26.35 3.20 0.83 5.31% $0.22 $0.33 11.93%
Average 24.78 17.92 2.52 3.94% $0.55 $1.22 13.58%

Upon analyzing Airbnb, the following trends can be observed:

  • The current Price to Earnings ratio of 32.43 is 1.31x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

  • The current Price to Book ratio of 10.21, which is 0.57x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

  • The Price to Sales ratio of 6.41, which is 2.54x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • The Return on Equity (ROE) of 2.02% is 1.92% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.

  • 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.

  • The gross profit of $2.1 Billion is 1.72x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

  • 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

debt to equity

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

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:

  • Airbnb demonstrates a stronger financial position compared to its top 4 peers in the sector.

  • With a lower debt-to-equity ratio of 0.33, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.

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. The low ROE and EBITDA suggest that Airbnb may not be utilizing its assets efficiently. However, the high gross profit and revenue growth indicate strong performance in generating profits and increasing sales.

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