Pinterest vs Airbnb Which Should You Buy?

Pinterest and Airbnb are two popular companies in the tech industry that have caught the attention of investors. Pinterest, the social media platform that allows users to discover and save ideas, has seen steady growth in recent years. On the other hand, Airbnb, the online marketplace for lodging and travel experiences, has faced challenges due to the impact of the COVID-19 pandemic. Investors are analyzing the potential of both companies and comparing their stocks to determine which may be the better investment opportunity.

Pinterest or Airbnb?

When comparing Pinterest 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 Pinterest 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. Pinterest 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. Pinterest 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 Pinterest P/E ratio at 96.36 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. Pinterest P/B ratio is 7.19 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, Pinterest has seen a 5-year revenue growth of 2.17%, while Airbnb's is 1.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Pinterest's ROE at 7.00% and Airbnb's ROE at 22.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $30.44 for Pinterest and $130.75 for Airbnb. Over the past year, Pinterest's prices ranged from $27.00 to $45.19, with a yearly change of 67.35%. 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.