Comparing Airbnb (NASDAQ:ABNB) and Town Sports International (OTCMKTS:CLUBQ)

Town Sports International (OTCMKTS:CLUBQ) and Airbnb (NASDAQ:ABNB) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

80.8% of Airbnb shares are held by institutional investors. 32.2% of Town Sports International shares are held by company insiders. Comparatively, 27.8% of Airbnb shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Town Sports International and Airbnb”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Town Sports International	N/A	N/A	N/A	N/A	N/A
Airbnb	$11.10 billion	7.24	$2.65 billion	$4.21	31.04

Airbnb has higher revenue and earnings than Town Sports International.

Analyst Ratings

This is a breakdown of current recommendations for Town Sports International and Airbnb, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Town Sports International	0	0	0	0	0.00
Airbnb	2	21	13	3	2.44

Airbnb has a consensus target price of $147.84, indicating a potential upside of 13.15%. Given Airbnb’s stronger consensus rating and higher probable upside, analysts clearly believe Airbnb is more favorable than Town Sports International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Town Sports International	N/A	N/A	N/A
Airbnb	22.03%	32.14%	10.95%

Summary

Airbnb beats Town Sports International on 9 of the 10 factors compared between the two stocks.

About Town Sports International

Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company's clubs offer special purpose rooms for group fitness classes; and other exercise programs, as well as accommodate cardiovascular and strength-training equipment. Its clubs also provide amenities, including swimming pools, racquet and basketball courts, and functional training zones, as well as babysitting services; and fee-based program services, which comprise personal and small group training, children's programs, and summer camps for kids. The company sells its memberships through direct sales at the club level, as well as corporate and group sales; and through its Websites. As of December 31, 2019, it owned and operated 186 fitness clubs. The company was founded in 1973 and is based in Jupiter, Florida.

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.