Expedia vs Airbnb Which Performs Better?

Expedia Group Inc. and Airbnb Inc. are two prominent players in the travel and accommodation industry, each offering unique investment opportunities for shareholders. Expedia operates a diverse portfolio of online travel platforms, including Expedia.com and Hotels.com, while Airbnb provides a platform for individuals to rent out their homes or properties to travelers. Both companies have seen significant growth in recent years, but face competition and regulatory challenges. Analyzing their financial performance, market trends, and strategic initiatives can help investors make informed decisions about which stock is a better investment option.

Expedia or Airbnb?

When comparing Expedia 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 Expedia 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. Expedia has a dividend yield of -%, while Airbnb has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Expedia reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Expedia P/E ratio at 22.25 and Airbnb's P/E ratio at 44.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Expedia P/B ratio is 17.96 while Airbnb's P/B ratio is 9.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Expedia has seen a 5-year revenue growth of 0.18%, while Airbnb's is 1.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and Airbnb's ROE at 22.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $182.24 for Expedia and $130.75 for Airbnb. Over the past year, Expedia's prices ranged from $107.25 to $192.34, with a yearly change of 79.34%. 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.