Analyzing Airbnb (NASDAQ:ABNB) and AMC Entertainment (NYSE:AMC)

Airbnb (NASDAQ:ABNB) and AMC Entertainment (NYSE:AMC) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a summary of recent recommendations for Airbnb and AMC Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	5	19	12	3	2.33
AMC Entertainment	2	6	1	0	1.89

Airbnb currently has a consensus target price of $144.48, suggesting a potential upside of 5.60%. AMC Entertainment has a consensus target price of $3.26, suggesting a potential upside of 92.23%. Given AMC Entertainment’s higher probable upside, analysts plainly believe AMC Entertainment is more favorable than Airbnb.

Profitability

This table compares Airbnb and AMC Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbnb	22.03%	32.14%	10.95%
AMC Entertainment	-13.16%	N/A	-5.27%

Insider and Institutional Ownership

80.8% of Airbnb shares are owned by institutional investors. Comparatively, 28.8% of AMC Entertainment shares are owned by institutional investors. 27.9% of Airbnb shares are owned by insiders. Comparatively, 0.4% of AMC Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Airbnb and AMC Entertainment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$11.10 billion	7.59	$2.65 billion	$4.21	32.50
AMC Entertainment	$4.64 billion	0.19	-$352.60 million	($1.41)	-1.20

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

Volatility & Risk

Airbnb has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Summary

Airbnb beats AMC Entertainment on 14 of the 15 factors compared between the two stocks.

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.

About AMC Entertainment

AMC Entertainment Holdings, Inc., through its subsidiaries, engages in the theatrical exhibition business. It owns, operates, or has interests in theatres in the United States and Europe. The company was founded in 1920 and is headquartered in Leawood, Kansas.