Head-To-Head Analysis: Airbnb (NASDAQ:ABNB) vs. Expedia Group (NASDAQ:EXPE)

Airbnb (NASDAQ:ABNB) and Expedia Group (NASDAQ:EXPE) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airbnb	20.45%	33.38%	10.67%
Expedia Group	12.97%	87.32%	7.85%

Analyst Ratings

This is a breakdown of recent ratings for Airbnb and Expedia Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	2	13	27	2	2.66
Expedia Group	1	21	18	0	2.42

Airbnb presently has a consensus price target of $181.93, suggesting a potential upside of 4.39%. Expedia Group has a consensus price target of $315.24, suggesting a potential upside of 8.01%. Given Expedia Group’s higher possible upside, analysts clearly believe Expedia Group is more favorable than Airbnb.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$12.24 billion	8.53	$2.51 billion	$4.40	39.61
Expedia Group	$15.70 billion	2.23	$1.29 billion	$16.04	18.20

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

Insider & Institutional Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 90.8% of Expedia Group shares are held by institutional investors. 27.2% of Airbnb shares are held by company insiders. Comparatively, 5.2% of Expedia Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Airbnb has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Expedia Group has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Summary

Airbnb beats Expedia Group on 9 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 Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.