Airbnb (NASDAQ:ABNB – Get Free Report) and Life Time Group (NYSE:LTH – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings for Airbnb and Life Time Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Airbnb | 2 | 16 | 15 | 1 | 2.44 |
| Life Time Group | 0 | 3 | 6 | 0 | 2.67 |
Airbnb presently has a consensus target price of $149.42, indicating a potential upside of 12.02%. Life Time Group has a consensus target price of $39.25, indicating a potential upside of 47.30%. Given Life Time Group’s stronger consensus rating and higher possible upside, analysts plainly believe Life Time Group is more favorable than Airbnb.
Volatility and Risk
Insider & Institutional Ownership
80.8% of Airbnb shares are held by institutional investors. Comparatively, 79.4% of Life Time Group shares are held by institutional investors. 27.9% of Airbnb shares are held by company insiders. Comparatively, 8.7% of Life Time Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Airbnb and Life Time Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Airbnb | 20.51% | 30.88% | 10.32% |
| Life Time Group | 12.51% | 10.20% | 3.89% |
Earnings & Valuation
This table compares Airbnb and Life Time Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Airbnb | $12.24 billion | 6.63 | $2.51 billion | $4.04 | 33.02 |
| Life Time Group | $3.00 billion | 1.97 | $373.67 million | $1.66 | 16.05 |
Airbnb has higher revenue and earnings than Life Time Group. Life Time Group 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 Life Time Group on 12 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 Life Time Group
Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.
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