Comparing Airbnb (NASDAQ:ABNB) and Six Flags Entertainment (NYSE:FUN)

Six Flags Entertainment (NYSE:FUN) and Airbnb (NASDAQ:ABNB) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Six Flags Entertainment and Airbnb, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Six Flags Entertainment	1	2	11	0	2.71
Airbnb	5	19	13	2	2.31

Six Flags Entertainment presently has a consensus price target of $39.07, suggesting a potential upside of 71.86%. Airbnb has a consensus price target of $142.72, suggesting a potential upside of 9.34%. Given Six Flags Entertainment’s stronger consensus rating and higher possible upside, research analysts plainly believe Six Flags Entertainment is more favorable than Airbnb.

Risk and Volatility

Six Flags Entertainment has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Profitability

This table compares Six Flags Entertainment and Airbnb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Six Flags Entertainment	-14.92%	-1.00%	-0.22%
Airbnb	22.67%	32.19%	11.03%

Insider and Institutional Ownership

64.7% of Six Flags Entertainment shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 1.8% of Six Flags Entertainment shares are held by insiders. Comparatively, 27.9% of Airbnb shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Six Flags Entertainment and Airbnb”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Six Flags Entertainment	$2.71 billion	0.85	-$231.16 million	($4.85)	-4.69
Airbnb	$11.10 billion	7.31	$2.65 billion	$4.13	31.61

Airbnb has higher revenue and earnings than Six Flags Entertainment. Six Flags Entertainment is trading at a lower price-to-earnings ratio than Airbnb, indicating that it is currently the more affordable of the two stocks.

Summary

Airbnb beats Six Flags Entertainment on 13 of the 15 factors compared between the two stocks.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.

About Airbnb

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.