Airbnb vs Zillow Which Is a Smarter Choice?

Airbnb and Zillow are two prominent players in the real estate market, but their stocks appeal to different types of investors. Airbnb, known for its short-term rental platform, has generated significant excitement since going public in late 2020. On the other hand, Zillow, a popular online real estate marketplace, offers a more stable investment option. Both companies have seen fluctuations in their stock prices due to market conditions and competition. Investors must carefully consider their risk tolerance and investment goals when choosing between Airbnb and Zillow stocks.

Airbnb or Zillow?

When comparing Airbnb and Zillow, 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 Zillow.

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 Zillow 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, Zillow 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 45.49 and Zillow's P/E ratio at -127.69. 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 9.85 while Zillow's P/B ratio is 3.65.

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 Zillow's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airbnb's ROE at 22.59% and Zillow's ROE at -2.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $131.32 for Airbnb and $69.80 for Zillow. Over the past year, Airbnb's prices ranged from $110.38 to $170.10, with a yearly change of 54.10%. Zillow's prices fluctuated between $36.38 and $73.89, with a yearly change of 103.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.