Zillow vs Airbnb Which Is More Promising?

Zillow and Airbnb are two popular companies in the real estate and vacation rental industries. Both companies have seen significant growth in recent years, with Zillow dominating the online real estate marketplace and Airbnb revolutionizing the way people travel and book accommodations. Investors are constantly comparing the two stocks, weighing factors such as revenue growth, market share, and competition. Understanding the differences and similarities between Zillow and Airbnb stocks is key to making informed investment decisions in these dynamic industries.

Zillow or Airbnb?

When comparing Zillow 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 Zillow 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. Zillow 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. Zillow 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 Zillow P/E ratio at -139.74 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. Zillow P/B ratio is 3.99 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, Zillow has seen a 5-year revenue growth of 0.24%, while Airbnb's is 1.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zillow's ROE at -2.90% and Airbnb's ROE at 22.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $76.50 for Zillow and $130.75 for Airbnb. Over the past year, Zillow's prices ranged from $38.06 to $83.67, with a yearly change of 119.84%. 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.