Airbnb vs FedEx Which Outperforms?

Airbnb and FedEx are two well-known companies in the service industry, but they operate in very different sectors. Airbnb is a popular accommodation marketplace that allows individuals to rent out their homes or properties to travelers, while FedEx is a global logistics company that specializes in shipping and courier services. Both companies have seen fluctuations in their stock prices over the years, with investors closely monitoring their performance in the market. In this comparison, we will analyze the strengths and weaknesses of Airbnb and FedEx stocks to determine which may be a more viable investment opportunity.

Airbnb or FedEx?

When comparing Airbnb and FedEx, 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 FedEx.

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 FedEx has a dividend yield of 2.3%. 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, FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%.

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 FedEx's P/E ratio at 17.69. 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 FedEx's P/B ratio is 2.63.

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 FedEx's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airbnb's ROE at 22.59% and FedEx's ROE at 15.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $135.12 for Airbnb and $288.70 for FedEx. Over the past year, Airbnb's prices ranged from $110.38 to $170.10, with a yearly change of 54.10%. FedEx's prices fluctuated between $234.45 and $313.84, with a yearly change of 33.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.