Comparing Airbnb (NASDAQ:ABNB) & OneSpaWorld (NASDAQ:OSW)

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

Analyst Recommendations

This is a breakdown of current recommendations for Airbnb and OneSpaWorld, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	1	13	22	2	2.66
OneSpaWorld	0	1	6	1	3.00

Airbnb presently has a consensus price target of $157.67, suggesting a potential upside of 17.91%. OneSpaWorld has a consensus price target of $28.20, suggesting a potential upside of 17.50%. Given Airbnb’s higher probable upside, analysts plainly believe Airbnb is more favorable than OneSpaWorld.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airbnb	19.90%	31.24%	10.16%
OneSpaWorld	7.85%	18.00%	13.77%

Institutional & Insider Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are held by institutional investors. 27.2% of Airbnb shares are held by company insiders. Comparatively, 3.6% of OneSpaWorld shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Airbnb and OneSpaWorld”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$12.65 billion	6.37	$2.51 billion	$4.06	32.94
OneSpaWorld	$961.00 million	2.53	$71.62 million	$0.75	32.00

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

Volatility and Risk

Airbnb has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Summary

Airbnb beats OneSpaWorld 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 OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.