Airbnb vs Hostelworld Which Is a Better Investment?

Airbnb and Hostelworld are both well-known players in the accommodation industry, providing options for travelers around the world. Airbnb, a pioneer in the concept of homesharing, offers a wide range of unique and local accommodations, while Hostelworld specializes in budget-friendly hostel bookings. Both companies have experienced fluctuations in their stock performance, with Airbnb being a disruptor in the traditional hotel industry and Hostelworld catering to budget-conscious travelers. Their stocks may offer investors opportunities to capitalize on different segments of the travel market.

Airbnb or Hostelworld?

When comparing Airbnb and Hostelworld, 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 Hostelworld.

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 Hostelworld 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, Hostelworld 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 47.17 and Hostelworld's P/E ratio at 13.17. 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 Hostelworld's P/B ratio is 3.19.

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 Hostelworld's is -0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airbnb's ROE at 22.59% and Hostelworld's ROE at 24.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $135.12 for Airbnb and €1.55 for Hostelworld. Over the past year, Airbnb's prices ranged from $110.38 to $170.10, with a yearly change of 54.10%. Hostelworld's prices fluctuated between €1.20 and €2.00, with a yearly change of 66.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.