Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Airbnb (NASDAQ:ABNB) in relation to its major competitors in the Hotels, Restaurants & Leisure industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer valuable insights for investors and shed light on company's performance within 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 | 15.78 | 9.11 | 9.01 | 12.56% | $1.69 | $2.94 | 18.06% |
| Royal Caribbean Group | 32.26 | 6.13 | 2.22 | 25.92% | $1.72 | $2.02 | 39.0% |
| Trip.com Group Ltd | 27.54 | 1.44 | 5.43 | 0.54% | $1.53 | $9.24 | 180.4% |
| Expedia Group Inc | 24.71 | 11.20 | 1.65 | 24.77% | $0.71 | $3.52 | 8.57% |
| H World Group Ltd | 79.97 | 6.67 | 4.93 | 8.2% | $1.81 | $2.05 | 63.51% |
| Hyatt Hotels Corp | 25.89 | 3.31 | 1.89 | 1.87% | $0.25 | $0.34 | 5.26% |
| Wyndham Hotels & Resorts Inc | 22.66 | 7.55 | 4.77 | 11.87% | $0.18 | $0.24 | -1.23% |
| Choice Hotels International Inc | 20.55 | 78.14 | 3.79 | 144.05% | $0.16 | $0.2 | 2.73% |
| MakeMyTrip Ltd | 179.33 | 5.05 | 6.98 | 2.09% | $0.03 | $0.14 | 37.83% |
| Hilton Grand Vacations Inc | 12.53 | 1.81 | 1.03 | 4.33% | $0.23 | $0.32 | -8.78% |
| Marriott Vacations Worldwide Corp | 10.62 | 1.16 | 0.73 | 1.72% | $0.14 | $0.4 | -5.27% |
| Atour Lifestyle Holdings Ltd | 41.69 | 9.97 | 4.75 | 15.22% | $0.36 | $0.55 | 93.12% |
| Bluegreen Vacations Holding Corp | 19.68 | 5.70 | 1.46 | 9.8% | $0.06 | $0.18 | 4.55% |
| Target Hospitality Corp | 7.31 | 3.45 | 2.07 | 14.5% | $0.09 | $0.09 | -8.54% |
| Average | 38.83 | 10.89 | 3.21 | 20.38% | $0.56 | $1.48 | 31.63% |
th, td { padding: 8px; text-align: left; }
th { background-color: #293a5a; color: #fff; text-align: left; }
tr:nth-child(even) { background-color: #f2f4f8; }
tr:hover { background-color: #e1e4ea; }
td:nth-child(3), td:nth-child(5) { text-align: left; }
.dividend-amount { font-weight: bold; color: #0d6efd; }
.dividend-frequency { font-size: 12px; color: #6c757d; } By closely studying Airbnb, we can observe the following trends:
- At 15.78, the stock's Price to Earnings ratio is 0.41x less than the industry average, suggesting favorable growth potential.
- Considering a Price to Book ratio of 9.11, which is well below the industry average by 0.84x, the stock may be undervalued based on its book value compared to its peers.
- The Price to Sales ratio of 9.01, which is 2.81x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
- The Return on Equity (ROE) of 12.56% is 7.82% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
- With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.69 Billion, which is 3.02x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
- The gross profit of $2.94 Billion is 1.99x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
- The company's revenue growth of 18.06% is significantly lower compared to the industry average of 31.63%. This indicates a potential fall in the company's sales performance.
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
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 demonstrates a stronger financial position compared to its top 4 peers in the sector.
- With a lower debt-to-equity ratio of 0.46, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
In terms of ROE, Airbnb has a low return on equity compared to its industry peers. This indicates that the company may not be generating as much profit relative to its shareholders' equity.
On the other hand, Airbnb has a high EBITDA and gross profit, indicating strong profitability compared to its industry peers. However, the company's revenue growth is low, suggesting slower expansion compared to its competitors in the industry.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.