Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) in comparison to its major competitors within the Hotels, Restaurants & Leisure industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
Airbnb Background Started in 2008, Airbnb is the world's largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences. Airbnb's platform offered over 7 million active accommodation listings as of Sept. 30, 2023. Listings from the company's over 4 million hosts are spread over almost every country in the world. In the fourth quarter of 2022, 47% of revenue was from the North American region. Transaction fees for online bookings account for all its revenue.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Airbnb Inc | 17.54 | 10.13 | 10.01 | 61.68% | $1.69 | $2.94 | 17.79% |
| Royal Caribbean Group | 38.87 | 7.39 | 2.68 | 25.92% | $1.72 | $2.02 | 39.0% |
| Trip.com Group Ltd | 27.23 | 1.37 | 5.37 | 3.84% | $5.0 | $11.27 | 99.36% |
| Expedia Group Inc | 27.17 | 12.31 | 1.82 | 24.77% | $0.71 | $3.52 | 8.57% |
| Hyatt Hotels Corp | 28.85 | 3.69 | 2.11 | 1.87% | $0.25 | $0.34 | 5.26% |
| H World Group Ltd | 66.39 | 5.01 | 4.09 | 9.77% | $2.2 | $2.67 | 53.63% |
| Wyndham Hotels & Resorts Inc | 22.65 | 7.55 | 4.77 | 11.87% | $0.18 | $0.24 | -1.23% |
| MakeMyTrip Ltd | 120.46 | 6.45 | 8.51 | 2.64% | $0.04 | $0.15 | 25.62% |
| Choice Hotels International Inc | 21.90 | 83.29 | 4.04 | 144.05% | $0.16 | $0.2 | 2.73% |
| Hilton Grand Vacations Inc | 14.48 | 2.10 | 1.18 | 4.33% | $0.23 | $0.32 | -8.78% |
| Marriott Vacations Worldwide Corp | 11.31 | 1.24 | 0.78 | 1.72% | $0.14 | $0.4 | -5.27% |
| Atour Lifestyle Holdings Ltd | 37.43 | 9.39 | 4.47 | 15.22% | $0.36 | $0.55 | 93.12% |
| Target Hospitality Corp | 6.16 | 2.91 | 1.75 | 14.5% | $0.09 | $0.09 | -8.54% |
| GreenTree Hospitality Group Ltd | 6.73 | 1.46 | 2.03 | 8.1% | $0.18 | $0.21 | 15.29% |
| Average | 33.05 | 11.09 | 3.35 | 20.66% | $0.87 | $1.69 | 24.52% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } When closely examining Airbnb, the following trends emerge:
- With a Price to Earnings ratio of 17.54, which is 0.53x 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 10.13, significantly falling below the industry average by 0.91x, it suggests undervaluation and the possibility of untapped growth prospects.
- With a relatively high Price to Sales ratio of 10.01, which is 2.99x the industry average, the stock might be considered overvalued based on sales performance.
- With a Return on Equity (ROE) of 61.68% that is 41.02% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
- The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.69 Billion is 1.94x above the industry average, highlighting stronger profitability and robust cash flow generation.
- With higher gross profit of $2.94 Billion, which indicates 1.74x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
- The company's revenue growth of 17.79% is significantly lower compared to the industry average of 24.52%. This indicates a potential fall in the company's sales performance.
The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to 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 comparing Airbnb with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
- Among its top 4 peers, Airbnb has a stronger financial position with a lower debt-to-equity ratio of 0.25.
- 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.
In terms of ROE, EBITDA, and gross profit, Airbnb outperforms its industry peers, indicating strong profitability and operational efficiency.
However, the company's revenue growth is relatively low compared to its competitors, which may raise concerns about its ability to generate future growth.
Overall, while Airbnb shows promising financial performance in terms of profitability and valuation multiples, its slower revenue growth may be a point of consideration for industry sector analysis.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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