Tripadvisor vs Airbnb Which Is More Profitable?

Tripadvisor and Airbnb are two prominent players in the travel and accommodation industry, each offering unique services to consumers. Tripadvisor is known for its platform that allows users to browse and review hotels, restaurants, and attractions, while Airbnb is a popular choice for travelers looking for unique and affordable accommodations. Both companies have seen fluctuations in their stock prices in recent years, with investors weighing the impact of changing travel trends and economic conditions on their performance. This comparison explores the differences between Tripadvisor and Airbnb stocks and their potential for future growth.

Tripadvisor or Airbnb?

When comparing Tripadvisor 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 Tripadvisor 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. Tripadvisor 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. Tripadvisor 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 Tripadvisor P/E ratio at 21.27 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. Tripadvisor P/B ratio is 2.03 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, Tripadvisor has seen a 5-year revenue growth of 0.10%, while Airbnb's is 1.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tripadvisor's ROE at 10.29% and Airbnb's ROE at 22.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.49 for Tripadvisor and $130.75 for Airbnb. Over the past year, Tripadvisor's prices ranged from $12.93 to $28.76, with a yearly change of 122.43%. 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.