Airbnb vs MakeMyTrip Which Is More Profitable?

Airbnb and MakeMyTrip are both prominent players in the travel industry, offering services for accommodation and travel bookings. While Airbnb is a global online marketplace for lodging and experiences, MakeMyTrip is a leading online travel platform in India. Both companies have seen fluctuations in their stock prices due to the impact of the COVID-19 pandemic on the travel industry. Investors are closely monitoring their performance and growth potential amidst changing consumer preferences and travel restrictions.

Airbnb or MakeMyTrip?

When comparing Airbnb and MakeMyTrip, 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 MakeMyTrip.

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 MakeMyTrip 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, MakeMyTrip 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 47.01 and MakeMyTrip's P/E ratio at 57.46. 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 10.18 while MakeMyTrip's P/B ratio is 11.59.

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 MakeMyTrip's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airbnb's ROE at 22.59% and MakeMyTrip's ROE at 21.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $136.56 for Airbnb and $116.80 for MakeMyTrip. Over the past year, Airbnb's prices ranged from $110.38 to $170.10, with a yearly change of 54.10%. MakeMyTrip's prices fluctuated between $43.31 and $120.97, with a yearly change of 179.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.