Critical Comparison: Airbnb (NASDAQ:ABNB) & Travel + Leisure (NYSE:TNL)

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

Valuation & Earnings

This table compares Airbnb and Travel + Leisure”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$11.10 billion	6.81	$2.65 billion	$4.21	28.90
Travel + Leisure	$3.97 billion	1.05	$411.00 million	$6.08	10.63

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

Profitability

This table compares Airbnb and Travel + Leisure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbnb	22.03%	32.14%	10.95%
Travel + Leisure	10.36%	-49.06%	6.24%

Risk & Volatility

Airbnb has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Travel + Leisure has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Institutional and Insider Ownership

80.8% of Airbnb shares are owned by institutional investors. Comparatively, 87.5% of Travel + Leisure shares are owned by institutional investors. 27.9% of Airbnb shares are owned by company insiders. Comparatively, 3.8% of Travel + Leisure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Airbnb and Travel + Leisure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	5	20	11	3	2.31
Travel + Leisure	1	1	10	0	2.75

Airbnb presently has a consensus price target of $143.31, indicating a potential upside of 17.76%. Travel + Leisure has a consensus price target of $69.90, indicating a potential upside of 8.13%. Given Airbnb’s higher possible upside, equities research analysts plainly believe Airbnb is more favorable than Travel + Leisure.

Summary

Airbnb beats Travel + Leisure on 11 of the 15 factors compared between the two stocks.

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.

About Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.