Booking vs Airbnb Which Is More Promising?

Booking Holdings and Airbnb are two of the biggest players in the travel industry, offering a wide range of accommodations for travelers around the world. While both companies have experienced significant growth in recent years, there are some key differences between their stocks. Booking Holdings, with its diverse portfolio of travel services, has a more established track record on the stock market. On the other hand, Airbnb, as a newer company, has shown impressive growth potential but also comes with higher volatility. Investors must weigh the pros and cons of each stock before making a decision.

Booking or Airbnb?

When comparing Booking and Airbnb, 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 Booking and Airbnb.

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. Booking has a dividend yield of 0.7%, while Airbnb has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Booking reports a 5-year dividend growth of 0.00% year and a payout ratio of 17.57%. On the other hand, Airbnb 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 Booking P/E ratio at 32.97 and Airbnb's P/E ratio at 46.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Booking P/B ratio is -45.45 while Airbnb's P/B ratio is 10.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Booking has seen a 5-year revenue growth of 0.93%, while Airbnb's is 1.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Booking's ROE at -136.80% and Airbnb's ROE at 22.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4951.94 for Booking and $133.15 for Airbnb. Over the past year, Booking's prices ranged from $3079.50 to $5069.44, with a yearly change of 64.62%. Airbnb's prices fluctuated between $110.38 and $170.10, with a yearly change of 54.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.