Critical Review: Norwegian Cruise Line (NYSE:NCLH) vs. Airbnb (NASDAQ:ABNB)

Airbnb (NASDAQ:ABNB) and Norwegian Cruise Line (NYSE:NCLH) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

80.8% of Airbnb shares are owned by institutional investors. Comparatively, 69.6% of Norwegian Cruise Line shares are owned by institutional investors. 27.2% of Airbnb shares are owned by company insiders. Comparatively, 0.4% of Norwegian Cruise Line shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Airbnb and Norwegian Cruise Line”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$12.24 billion	6.61	$2.51 billion	$4.06	33.09
Norwegian Cruise Line	$9.83 billion	0.85	$423.25 million	$1.19	15.26

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Airbnb and Norwegian Cruise Line, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	1	13	21	2	2.65
Norwegian Cruise Line	1	11	8	1	2.43

Airbnb presently has a consensus target price of $157.67, indicating a potential upside of 17.36%. Norwegian Cruise Line has a consensus target price of $21.11, indicating a potential upside of 16.28%. Given Airbnb’s stronger consensus rating and higher possible upside, research analysts plainly believe Airbnb is more favorable than Norwegian Cruise Line.

Profitability

This table compares Airbnb and Norwegian Cruise Line’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbnb	19.90%	31.24%	10.16%
Norwegian Cruise Line	5.66%	47.84%	4.46%

Risk & Volatility

Airbnb has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Norwegian Cruise Line has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

Summary

Airbnb beats Norwegian Cruise Line on 13 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 Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various ports, including Scandinavia, Northern Europe, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. It distributes its products through retail/travel advisor and onboard cruise sales channels, as well as meetings, incentives, and charters. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida.