In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate 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 36.67 12.14 7.44 10.57% $0.93 $2.98 16.54%
Royal Caribbean Group 17.44 7.38 4.10 11.25% $1.85 $2.29 6.48%
Viking Holdings Ltd 27 22.34 5.22 44.1% $0.76 $1.0 16.49%
Carnival Corporation Ltd 11.52 2.48 1.32 14.14% $2.98 $3.81 3.46%
Expedia Group Inc 16.28 25.70 2.09 98.38% $1.32 $3.91 13.97%
Hyatt Hotels Corp 194 4.48 2.09 3.37% $0.33 $0.39 1.16%
Norwegian Cruise Line Holdings Ltd 9.12 2.69 0.72 8.89% $0.69 $1.05 4.89%
Choice Hotels International Inc 14.66 32.76 2.94 45.84% $0.13 $0.22 3.36%
Hilton Grand Vacations Inc 19.65 2.44 0.56 1.04% $0.16 $0.35 7.27%
Average 38.71 12.53 2.38 28.38% $1.03 $1.63 7.13%

By closely studying Airbnb, we can observe the following trends:

  • The stock's Price to Earnings ratio of 36.67 is lower than the industry average by 0.95x, suggesting potential value in the eyes of market participants.

  • Considering a Price to Book ratio of 12.14, which is well below the industry average by 0.97x, the stock may be undervalued based on its book value compared to its peers.

  • The Price to Sales ratio of 7.44, which is 3.13x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • The company has a lower Return on Equity (ROE) of 10.57%, which is 17.81% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.

  • 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.

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

  • The company is experiencing remarkable revenue growth, with a rate of 16.54%, outperforming the industry average of 7.13%.

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 evaluating Airbnb alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

  • Airbnb is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.32.

  • This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.

Key Takeaways

For Airbnb in the Hotels, Restaurants & Leisure industry, the PE and PB ratios suggest the company is undervalued compared to its peers. However, the high PS ratio indicates a premium valuation based on revenue. In terms of profitability, Airbnb's low ROE and EBITDA suggest lower returns compared to industry peers. The high gross profit and revenue growth indicate strong operational performance and potential for future growth in the industry sector.

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