In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Airbnb (NASDAQ:ABNB) alongside its primary competitors in the Hotels, Restaurants & Leisure industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide 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 | 35.95 | 11.90 | 7.29 | 10.57% | $0.93 | $2.98 | 16.54% |
| Royal Caribbean Group | 14.99 | 6.34 | 3.53 | 11.25% | $1.85 | $2.29 | 6.48% |
| Viking Holdings Ltd | 26.68 | 22.07 | 5.16 | 44.1% | $0.76 | $1.0 | 16.49% |
| Expedia Group Inc | 16.61 | 26.22 | 2.13 | 98.38% | $1.32 | $3.91 | 13.97% |
| Carnival Corporation Ltd | 10.02 | 2.35 | 1.17 | 4.13% | $1.56 | $2.44 | 5.29% |
| Hyatt Hotels Corp | 195.65 | 4.52 | 2.11 | 3.37% | $0.33 | $0.39 | 1.16% |
| Norwegian Cruise Line Holdings Ltd | 8.85 | 2.61 | 0.70 | 8.89% | $0.69 | $1.05 | 4.89% |
| Global Business Travel Group Inc | 59.38 | 3.03 | 1.54 | 0.92% | $0.1 | $0.51 | 37.88% |
| Choice Hotels International Inc | 14.42 | 32.23 | 2.89 | 45.84% | $0.13 | $0.22 | 3.36% |
| Hilton Grand Vacations Inc | 20.32 | 2.52 | 0.58 | 1.04% | $0.16 | $0.35 | 7.27% |
| Average | 40.77 | 11.32 | 2.2 | 24.21% | $0.77 | $1.35 | 10.75% |
After a detailed analysis of Airbnb, the following trends become apparent:
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The Price to Earnings ratio of 35.95 is 0.88x lower than the industry average, indicating potential undervaluation for the stock.
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The elevated Price to Book ratio of 11.9 relative to the industry average by 1.05x suggests company might be overvalued based on its book value.
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The stock's relatively high Price to Sales ratio of 7.29, surpassing the industry average by 3.31x, may indicate an aspect of overvaluation in terms of sales performance.
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The Return on Equity (ROE) of 10.57% is 13.64% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
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Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $930 Million, which is 1.21x above the industry average, indicating stronger profitability and robust cash flow generation.
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Compared to its industry, the company has higher gross profit of $2.98 Billion, which indicates 2.21x 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% is notably higher compared to the industry average of 10.75%, showcasing exceptional sales performance and strong demand for its products or services.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
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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Among its top 4 peers, Airbnb has a stronger financial position with a lower debt-to-equity ratio of 0.32.
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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 low compared to peers, indicating potential undervaluation. The high PB ratio suggests investors are willing to pay a premium for its assets. The high PS ratio implies strong revenue generation relative to market value. In terms of ROE, Airbnb lags behind peers, indicating lower profitability from shareholder equity. The high EBITDA and gross profit signify robust operational performance, while the high revenue growth suggests strong top-line expansion compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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