Head-To-Head Analysis: Airbnb (NASDAQ:ABNB) and TH International (NASDAQ:THCH)

TH International (NASDAQ:THCH) and Airbnb (NASDAQ:ABNB) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TH International	$188.21 million	0.21	-$62.13 million	($2.24)	-0.53
Airbnb	$12.24 billion	8.04	$2.51 billion	$4.40	37.36

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

Risk and Volatility

TH International has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for TH International and Airbnb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TH International	1	0	0	0	1.00
Airbnb	2	13	27	2	2.66

Airbnb has a consensus target price of $182.43, indicating a potential upside of 10.97%. Given Airbnb’s stronger consensus rating and higher probable upside, analysts plainly believe Airbnb is more favorable than TH International.

Profitability

This table compares TH International and Airbnb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TH International	-42.55%	N/A	-22.27%
Airbnb	20.45%	33.38%	10.67%

Institutional & Insider Ownership

91.8% of TH International shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 27.2% of Airbnb shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Airbnb beats TH International on 14 of the 15 factors compared between the two stocks.

About TH International

TH International Limited operates Tim Hortons coffee shops in mainland China, Hong Kong, and Macau. The company offers brewed tea, coffee, milk tea, lemonade, hot chocolate, and coffee drinks. It is also involved in franchise related business. The company is based in Shanghai, the People's Republic of China.

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.