Hostelworld vs Sonder Which Outperforms?

Hostelworld and Sonder are two companies operating in the hospitality industry, offering different services to customers. Hostelworld is a booking platform that specializes in affordable accommodations, catering to budget-conscious travelers looking for hostels and budget hotels. On the other hand, Sonder focuses on providing upscale, design-driven accommodations for guests seeking a more luxurious stay. Both companies have their unique strengths and target markets, making them appealing options for investors seeking exposure to the hospitality sector.

Hostelworld or Sonder?

When comparing Hostelworld and Sonder, 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 Hostelworld and Sonder.

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. Hostelworld has a dividend yield of -%, while Sonder has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hostelworld reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Sonder 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 Hostelworld P/E ratio at 14.44 and Sonder's P/E ratio at -0.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hostelworld P/B ratio is 3.50 while Sonder's P/B ratio is -0.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hostelworld has seen a 5-year revenue growth of -0.13%, while Sonder's is -0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hostelworld's ROE at 24.88% and Sonder's ROE at 52.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €1.70 for Hostelworld and $3.66 for Sonder. Over the past year, Hostelworld's prices ranged from €1.48 to €2.00, with a yearly change of 35.14%. Sonder's prices fluctuated between $0.88 and $10.50, with a yearly change of 1093.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.