Airbnb (NASDAQ:ABNB) versus Choice Hotels International (NYSE:CHH) Financial Review

Choice Hotels International (NYSE:CHH) and Airbnb (NASDAQ:ABNB) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Risk & Volatility

Choice Hotels International has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Earnings and Valuation

This table compares Choice Hotels International and Airbnb”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Choice Hotels International	$1.60 billion	2.93	$369.95 million	$7.08	14.68
Airbnb	$12.24 billion	8.10	$2.51 billion	$4.40	37.63

Airbnb has higher revenue and earnings than Choice Hotels International. Choice Hotels International is trading at a lower price-to-earnings ratio than Airbnb, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Choice Hotels International and Airbnb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Choice Hotels International	3	9	2	0	1.93
Airbnb	2	13	27	2	2.66

Choice Hotels International presently has a consensus price target of $112.75, indicating a potential upside of 8.46%. Airbnb has a consensus price target of $181.93, indicating a potential upside of 9.87%. Given Airbnb’s stronger consensus rating and higher possible upside, analysts clearly believe Airbnb is more favorable than Choice Hotels International.

Institutional & Insider Ownership

65.6% of Choice Hotels International shares are owned by institutional investors. Comparatively, 80.8% of Airbnb shares are owned by institutional investors. 23.9% of Choice Hotels International shares are owned by company insiders. Comparatively, 27.2% of Airbnb shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Choice Hotels International and Airbnb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Choice Hotels International	20.28%	205.69%	10.68%
Airbnb	20.45%	33.38%	10.67%

Summary

Airbnb beats Choice Hotels International on 12 of the 15 factors compared between the two stocks.

About Choice Hotels International

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.

About Airbnb

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.