Studio City Ih (NYSE:MSC) and Airbnb (NASDAQ:ABNB) Critical Analysis

Airbnb (NASDAQ:ABNB) and Studio City Ih (NYSE:MSC) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Airbnb and Studio City Ih, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	2	16	13	1	2.41
Studio City Ih	1	0	0	0	1.00

Airbnb currently has a consensus target price of $146.88, suggesting a potential upside of 11.43%. Given Airbnb’s stronger consensus rating and higher probable upside, equities analysts plainly believe Airbnb is more favorable than Studio City Ih.

Insider & Institutional Ownership

80.8% of Airbnb shares are owned by institutional investors. 27.9% of Airbnb shares are owned by company insiders. Comparatively, 54.9% of Studio City Ih shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Airbnb has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Studio City Ih has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500.

Valuation & Earnings

This table compares Airbnb and Studio City Ih”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$12.24 billion	6.55	$2.51 billion	$4.04	32.63
Studio City Ih	$694.57 million	0.76	-$64.30 million	($0.31)	-8.06

Airbnb has higher revenue and earnings than Studio City Ih. Studio City Ih 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 Studio City Ih’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%
Studio City Ih	-8.51%	-9.60%	-1.99%

Summary

Airbnb beats Studio City Ih on 14 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 Studio City Ih

Studio City International Holdings Limited operates an entertainment resort in Macau. It operates Studio City Casino, comprising gaming tables, including tables for VIP rolling chip operations and gaming machines; and resort, which offers various non-gaming attractions, including figure-8 ferris wheel, night club and karaoke venue, live performance arena, and an outdoor and indoor water park, as well as hotel rooms and various food and beverage establishments, and retail space. The company was formerly known as Cyber One Agents Limited and changed its name to Studio City International Holdings Limited in January 2012. The company was founded in 2000 and is based in Central, Hong Kong. Studio City International Holdings Limited is a subsidiary of MCO Cotai Investments Limited.