OYO vs Airbnb Which Offers More Value?

OYO and Airbnb are two prominent players in the hospitality industry, with both companies offering unique accommodation options for travelers. While Airbnb has gained widespread popularity for its diverse range of rental properties, OYO has garnered attention for its budget-friendly hotels and innovative business model. Investors are closely monitoring the performance of both stocks, as they navigate the challenges of the global pandemic and changing consumer behaviors. As these companies continue to adapt to the evolving market, their stock performances remain a topic of interest for investors seeking opportunities in the hospitality sector.

OYO or Airbnb?

When comparing OYO 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 OYO 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. OYO has a dividend yield of 2.41%, while Airbnb has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. OYO reports a 5-year dividend growth of 15.68% 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 OYO P/E ratio at 12.69 and Airbnb's P/E ratio at 47.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. OYO P/B ratio is 0.78 while Airbnb's P/B ratio is 10.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, OYO has seen a 5-year revenue growth of 0.58%, while Airbnb's is 1.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with OYO's ROE at 6.34% and Airbnb's ROE at 22.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2512.00 for OYO and $135.12 for Airbnb. Over the past year, OYO's prices ranged from ¥1888.00 to ¥2864.00, with a yearly change of 51.69%. 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.