Airbnb vs New York City REIT Which Should You Buy?

Airbnb and New York City REIT stocks represent two different investment opportunities within the real estate sector. Airbnb is a popular short-term rental platform that allows individuals to rent out their properties to travelers, while New York City REIT stocks offer investors the opportunity to invest in commercial real estate assets in one of the world's most dynamic cities. Both options present unique advantages and risks, making them appealing options for investors looking to diversify their portfolios within the real estate market.

Airbnb or New York City REIT?

When comparing Airbnb and New York City REIT, 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 New York City REIT.

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 New York City REIT 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, New York City REIT 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 New York City REIT's P/E ratio at -0.11. 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 New York City REIT's P/B ratio is 0.24.

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 New York City REIT's is -0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airbnb's ROE at 22.59% and New York City REIT's ROE at -125.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $130.75 for Airbnb and $8.05 for New York City REIT. Over the past year, Airbnb's prices ranged from $110.38 to $170.10, with a yearly change of 54.10%. New York City REIT's prices fluctuated between $5.46 and $10.91, with a yearly change of 99.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.