Airbnb vs Expedia Which Is Stronger?

Airbnb and Expedia are two major players in the travel industry, offering different services to consumers. While Airbnb focuses on peer-to-peer lodging and experiences, Expedia is a well-established online travel agency. Both companies have seen fluctuations in their stock prices over the years, with Airbnb's IPO in 2020 generating significant interest from investors. As the travel industry continues to evolve, investors are closely watching how these two companies compete and adapt to changing consumer preferences.

Airbnb or Expedia?

When comparing Airbnb and Expedia, 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 Expedia.

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 Expedia 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, Expedia 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 44.96 and Expedia's P/E ratio at 22.25. 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 9.73 while Expedia's P/B ratio is 17.96.

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 Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airbnb's ROE at 22.59% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $130.75 for Airbnb and $182.24 for Expedia. Over the past year, Airbnb's prices ranged from $110.38 to $170.10, with a yearly change of 54.10%. Expedia's prices fluctuated between $107.25 and $192.34, with a yearly change of 79.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.