Airbnb vs ASOS

Airbnb and ASOS are two popular companies with different business models and target markets. Airbnb is a vacation rental platform that allows individuals to rent out their homes or apartments to travelers, while ASOS is an online fashion retailer that sells a wide range of clothing and accessories. Both companies have experienced significant growth in recent years, but their stocks have performed differently in the market. This comparison will explore the key factors driving the performance of Airbnb and ASOS stocks.

Airbnb or ASOS?

When comparing Airbnb and ASOS, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Airbnb and ASOS.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Airbnb has a dividend yield of -%, while ASOS has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Airbnb reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ASOS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Airbnb P/E ratio at 17.47 and ASOS's P/E ratio at -1.99. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Airbnb P/B ratio is 10.58 while ASOS's P/B ratio is 0.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Airbnb has seen a 5-year revenue growth of 1.26%, while ASOS's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airbnb's ROE at 58.39% and ASOS's ROE at -33.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $132.30 for Airbnb and $5.40 for ASOS. Over the past year, Airbnb's prices ranged from $110.38 to $170.10, with a yearly change of 54.10%. ASOS's prices fluctuated between $4.11 and $5.89, with a yearly change of 43.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.