Airbnb vs Booking Which Is More Reliable?

Airbnb and Booking Holdings are two major players in the online vacation rental and accommodation booking industry. Both companies offer services that allow travelers to find and book lodging options around the world. While Airbnb is known for its unique and personalized accommodation options, Booking Holdings offers a wide range of hotel, vacation rental, and other lodging choices. As investors consider the performance and potential of these companies, they must assess factors such as market dominance, growth potential, and financial stability.

Airbnb or Booking?

When comparing Airbnb and Booking, 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 Booking.

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 Booking has a dividend yield of 0.69%. 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, Booking reports a 5-year dividend growth of 0.00% year and a payout ratio of 17.57%.

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 47.17 and Booking's P/E ratio at 33.60. 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 10.21 while Booking's P/B ratio is -46.32.

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 Booking's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airbnb's ROE at 22.59% and Booking's ROE at -136.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $135.12 for Airbnb and $4936.00 for Booking. Over the past year, Airbnb's prices ranged from $110.38 to $170.10, with a yearly change of 54.10%. Booking's prices fluctuated between $3076.55 and $5069.44, with a yearly change of 64.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.