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 37.46 12.40 7.60 10.57% $0.93 $2.98 16.54%
Royal Caribbean Group 16.99 7.19 4 11.25% $1.85 $2.29 6.48%
Viking Holdings Ltd 26.92 22.27 5.21 44.1% $0.76 $1.0 16.49%
Carnival Corporation Ltd 11.26 2.42 1.29 14.14% $2.98 $3.81 3.46%
Expedia Group Inc 16.38 25.85 2.10 98.38% $1.32 $3.91 13.97%
Hyatt Hotels Corp 193.54 4.47 2.08 3.37% $0.33 $0.39 1.16%
Norwegian Cruise Line Holdings Ltd 9.01 2.65 0.72 8.89% $0.69 $1.05 4.89%
Choice Hotels International Inc 14.10 31.52 2.83 45.84% $0.13 $0.22 3.36%
Hilton Grand Vacations Inc 19.35 2.40 0.55 1.04% $0.16 $0.35 7.27%
Average 38.44 12.35 2.35 28.38% $1.03 $1.63 7.13%

When analyzing Airbnb, the following trends become evident:

  • With a Price to Earnings ratio of 37.46, which is 0.97x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

  • With a Price to Book ratio of 12.4, which is 1.0x the industry average, Airbnb might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.

  • The Price to Sales ratio of 7.6, which is 3.23x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • With a Return on Equity (ROE) of 10.57% that is 17.81% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.

  • The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $930 Million, which is 0.9x below the industry average. This potentially indicates lower profitability or financial challenges.

  • The company has higher gross profit of $2.98 Billion, which indicates 1.83x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • With a revenue growth of 16.54%, which surpasses the industry average of 7.13%, the company is demonstrating robust sales expansion and gaining market share.

Debt To Equity Ratio

debt to equity

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

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

  • 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 0.32.

Key Takeaways

The low P/E ratio suggests Airbnb may be undervalued compared to its peers in the Hotels, Restaurants & Leisure industry. However, the high P/B and P/S ratios indicate that investors are willing to pay a premium for the company's assets and sales. On the other hand, the low ROE and EBITDA, along with the high gross profit and revenue growth, suggest that Airbnb may not be efficiently utilizing its resources and generating returns compared to industry peers.

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