In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) against its key competitors in the Hotels, Restaurants & Leisure industry. By analyzing important 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 35.84 11.87 7.27 10.57% $0.93 $2.98 16.54%
Royal Caribbean Group 16.10 6.81 3.79 11.25% $1.85 $2.29 6.48%
Viking Holdings Ltd 26.15 21.64 5.06 44.1% $0.76 $1.0 16.49%
Expedia Group Inc 16.75 26.45 2.15 98.38% $1.32 $3.91 13.97%
Carnival Corporation Ltd 11.06 2.38 1.26 4.13% $1.56 $2.44 5.29%
Hyatt Hotels Corp 200.01 4.62 2.15 3.37% $0.33 $0.39 1.16%
Norwegian Cruise Line Holdings Ltd 8.97 2.64 0.71 8.89% $0.69 $1.05 4.89%
Choice Hotels International Inc 14.77 33 2.96 45.84% $0.13 $0.22 3.36%
Hilton Grand Vacations Inc 20.33 2.52 0.58 1.04% $0.16 $0.35 7.27%
Average 39.27 12.51 2.33 27.12% $0.85 $1.46 7.36%

When conducting a detailed analysis of Airbnb, the following trends become clear:

  • A Price to Earnings ratio of 35.84 significantly below the industry average by 0.91x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • The current Price to Book ratio of 11.87, which is 0.95x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

  • With a relatively high Price to Sales ratio of 7.27, which is 3.12x the industry average, the stock might be considered overvalued based on sales performance.

  • The Return on Equity (ROE) of 10.57% is 16.55% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.

  • The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $930 Million, which is 1.09x above the industry average, indicating stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $2.98 Billion, which indicates 2.04x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 16.54% is notably higher compared to the industry average of 7.36%, 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 assesses the extent to which a company relies on borrowed funds compared 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.

When assessing Airbnb against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

  • When considering the debt-to-equity ratio, Airbnb exhibits a stronger financial position compared to its top 4 peers.

  • This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.32, which can be perceived as a positive aspect by investors.

Key Takeaways

For Airbnb in the Hotels, Restaurants & Leisure industry, the PE ratio is low compared to peers, indicating potential undervaluation. The PB ratio is also low, suggesting a possible bargain opportunity. However, the PS ratio is high, signaling rich valuation based on revenue. In terms of performance, Airbnb's low ROE may indicate less efficient use of equity, while high EBITDA and gross profit levels reflect strong operational earnings. Additionally, the high revenue growth implies a promising outlook for the company within the industry sector.

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