In the dynamic landscape of travel services, Airbnb, Inc. (ABNB) and Booking Holdings Inc. (BKNG) represent two key players with distinct approaches to the market. While both companies operate within the same industry and often compete for the same customer base, their innovation strategies and offerings set them apart. In this article, I will analyze their performances, market positions, and growth potential to help you determine which company might be the more compelling investment opportunity.
Table of contents
Company Overview
Airbnb, Inc. Overview
Airbnb, Inc. operates a platform that connects hosts with guests seeking unique stays and experiences worldwide. Founded in 2007 and headquartered in San Francisco, California, Airbnb has transformed the hospitality industry by enabling individuals to list private rooms, homes, or vacation rentals. With a market capitalization of approximately $70.7B, Airbnb’s mission focuses on creating a world where anyone can belong anywhere, emphasizing community and cultural exchange. The company’s innovative marketplace model leverages technology to facilitate bookings through its website and mobile apps, positioning it as a key player in the travel services sector.
Booking Holdings Inc. Overview
Booking Holdings Inc., established in 1997 and based in Norwalk, Connecticut, is a leader in travel and restaurant online reservation services. With a market capitalization of around $153.7B, the company operates various platforms, including Booking.com and Priceline, which facilitate accommodation, flight, and car rental reservations globally. Booking Holdings aims to make travel easier for consumers by providing comprehensive services that cater to all aspects of their journey. The company’s extensive portfolio also includes KAYAK for price comparisons and OpenTable for restaurant bookings, showcasing its commitment to enhancing the travel experience.
Key similarities between Airbnb and Booking Holdings lie in their focus on the travel services industry and their utilization of online platforms to connect consumers with service providers. However, Airbnb primarily emphasizes short-term stays in private accommodations, while Booking Holdings provides a broader range of travel services, including hotel and flight reservations. This distinction highlights their different approaches to capturing market segments within the travel ecosystem.
Income Statement Comparison
The table below presents a comparative analysis of the most recent income statements for Airbnb, Inc. (ABNB) and Booking Holdings Inc. (BKNG) for the fiscal year 2024.
| Metric | Airbnb, Inc. (ABNB) | Booking Holdings Inc. (BKNG) |
|---|---|---|
| Revenue | 11.10B | 23.74B |
| EBITDA | 2.62B | 9.34B |
| EBIT | 2.55B | 8.59B |
| Net Income | 2.65B | 5.88B |
| EPS | 4.19 | 174.96 |
Interpretation of Income Statement
In 2024, both companies exhibited strong revenue growth, with Airbnb achieving 11.10B and Booking reaching 23.74B. Notably, Airbnb’s net income decreased to 2.65B from 4.79B in 2023, reflecting a shift in profitability despite revenue growth. Booking, however, demonstrated robust profitability with an increase in net income to 5.88B. The EBITDA margins for both companies remained stable, yet Airbnb’s margins faced pressure compared to the previous year. This decline in profitability for Airbnb suggests a need for strategic adjustments to enhance operational efficiency and overall margin improvement moving forward.
Financial Ratios Comparison
The following table provides a comparative overview of key financial ratios for Airbnb, Inc. (ABNB) and Booking Holdings Inc. (BKNG) based on the latest available data.
| Metric | Airbnb (ABNB) | Booking (BKNG) |
|---|---|---|
| ROE | 31.48% | -146.32% |
| ROIC | 18.69% | 44.14% |
| P/E | 28.40 | 29.89 |
| P/B | 9.87 | -46.72 |
| Current Ratio | 1.69 | 1.31 |
| Quick Ratio | 1.69 | 1.28 |
| D/E | 0.27 | -5.39 |
| Debt-to-Assets | 0.11 | 0.61 |
| Interest Coverage | N/A | 6.51 |
| Asset Turnover | 0.53 | 0.88 |
| Fixed Asset Turnover | 38.15 | 17.07 |
| Payout Ratio | 0% | 19.96% |
| Dividend Yield | 0% | 0.70% |
Interpretation of Financial Ratios
In comparing these ratios, Airbnb shows robust profitability with a strong ROE, indicating effective utilization of equity. However, its high P/B ratio suggests potential overvaluation. Booking, on the other hand, displays a significant debt burden reflected in its negative D/E ratio and high debt-to-assets ratio, raising concerns about financial stability despite its impressive ROIC and coverage ratios. Caution is advised for investors considering these companies, particularly with Booking’s debt levels.
Dividend and Shareholder Returns
Airbnb (ABNB) does not pay dividends, which aligns with its growth strategy focused on reinvestment and expansion. Instead, it utilizes share buybacks to return value to shareholders. Conversely, Booking Holdings (BKNG) offers a dividend with a payout ratio of approximately 20%, coupled with a modest annual yield of 0.7%. This dual approach of dividends and share buybacks positions both companies to potentially support long-term shareholder value creation, albeit through different methods.
Strategic Positioning
In the competitive landscape of the travel services industry, Airbnb, Inc. (ABNB) and Booking Holdings Inc. (BKNG) showcase distinct strategic positions. Airbnb holds a market cap of $70.7B, focusing on unique lodging experiences, while Booking, with a market cap of $153.7B, leads with a comprehensive suite of travel services. Both face competitive pressure from each other and emerging platforms, alongside technological disruptions that enhance customer experience. As market dynamics evolve, their adaptability will be crucial for maintaining share and growth.
Stock Comparison
In this section, I will analyze the weekly stock price movements and trading dynamics of Airbnb, Inc. (ABNB) and Booking Holdings Inc. (BKNG) over the past year, highlighting key price changes and market trends.
Trend Analysis
Airbnb, Inc. (ABNB) Over the past year, ABNB has experienced a price change of -16.07%, indicating a bearish trend. The highest price recorded was 167.86, while the lowest was 106.66. The trend shows deceleration, supported by a standard deviation of 13.59, which reflects significant volatility in the stock’s price movements. More recently, from September 7, 2025, to November 23, 2025, there has been a further decline of -7.71%, with a standard deviation of 3.83, suggesting a continued bearish sentiment.
Booking Holdings Inc. (BKNG) In contrast, BKNG has seen a price increase of 34.42% over the last year, classifying it as a bullish trend. The stock reached a peak price of 5720.87 and a low of 3328.13. However, the trend is also showing signs of deceleration, with a standard deviation of 758.67 indicating high volatility. From September 7, 2025, to November 23, 2025, BKNG’s price fell by -13.4%, accompanied by a significant standard deviation of 241.34, underscoring the recent challenges faced by the stock despite its overall positive performance over the year.
Analyst Opinions
Recent analyst recommendations for Airbnb, Inc. (ABNB) indicate a strong buy with an A- rating, attributed to its solid discounted cash flow and excellent return on assets and equity. Analysts highlight its growth potential and resilience in the travel sector. In contrast, Booking Holdings Inc. (BKNG) has a hold rating at B-, with strengths in discounted cash flow and return on assets but concerns regarding its return on equity and debt levels. The consensus for ABNB is a buy, while BKNG leans towards hold for 2025.
Stock Grades
I have analyzed the latest stock grades for two companies: Airbnb, Inc. (ABNB) and Booking Holdings Inc. (BKNG). Here are the findings:
Airbnb, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Underweight | 2025-11-07 |
| Wedbush | maintain | Neutral | 2025-11-07 |
| Wells Fargo | maintain | Underweight | 2025-11-07 |
| UBS | maintain | Neutral | 2025-11-07 |
| BTIG | maintain | Neutral | 2025-11-07 |
| UBS | maintain | Neutral | 2025-10-24 |
| Keybanc | maintain | Sector Weight | 2025-10-23 |
| BTIG | maintain | Neutral | 2025-10-07 |
| Truist Securities | maintain | Sell | 2025-09-03 |
| JMP Securities | maintain | Market Perform | 2025-08-11 |
Booking Holdings Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wedbush | upgrade | Outperform | 2025-11-13 |
| Barclays | maintain | Overweight | 2025-10-29 |
| DA Davidson | maintain | Buy | 2025-10-29 |
| UBS | maintain | Buy | 2025-10-29 |
| Wells Fargo | maintain | Equal Weight | 2025-10-29 |
| Cantor Fitzgerald | maintain | Neutral | 2025-10-29 |
| Truist Securities | maintain | Buy | 2025-10-29 |
| BTIG | maintain | Buy | 2025-10-29 |
| Keybanc | maintain | Overweight | 2025-10-29 |
| Benchmark | maintain | Buy | 2025-10-29 |
In summary, Airbnb, Inc. maintains a cautious stance across multiple analysts, with most ratings remaining neutral or underweight. Conversely, Booking Holdings Inc. shows a positive shift with an upgrade to “Outperform” by Wedbush, indicating a stronger outlook among analysts.
Target Prices
The consensus target prices for the following companies reflect optimistic growth expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Airbnb, Inc. | 165 | 105 | 137.43 |
| Booking Holdings Inc. | 6806 | 5433 | 6082.85 |
Analysts expect Airbnb, Inc. to reach a consensus price of 137.43, while Booking Holdings Inc. has a higher consensus of 6082.85. Currently, Airbnb’s stock price of 114.26 is below its consensus, suggesting potential upside, while Booking’s price of 4768 is also below its target, indicating room for growth.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Airbnb, Inc. (ABNB) and Booking Holdings Inc. (BKNG) based on their recent performance and market metrics.
| Criterion | Airbnb, Inc. (ABNB) | Booking Holdings Inc. (BKNG) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Strong (24% net margin) | Moderate (20% net margin) |
| Innovation | High | Moderate |
| Global presence | Strong | Very Strong |
| Market Share | Growing | Leading |
| Debt level | Low (10% debt-to-assets) | High (61% debt-to-assets) |
Key takeaways: Airbnb excels in innovation and maintains a strong profit margin, while Booking Holdings benefits from a robust global presence and diversification. However, Booking’s higher debt may pose risks compared to Airbnb’s lower leverage.
Risk Analysis
Below is a summary of the potential risks associated with Airbnb, Inc. (ABNB) and Booking Holdings Inc. (BKNG):
| Metric | Airbnb, Inc. (ABNB) | Booking Holdings Inc. (BKNG) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | Low | Moderate |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | Low | High |
In summary, both companies face significant market and regulatory risks, particularly influenced by fluctuating travel demands and regulatory changes in different countries. For instance, the ongoing pressures from governmental regulations surrounding short-term rentals affect Airbnb, while Booking faces challenges from geopolitical tensions and market competition.
Which one to choose?
When comparing Airbnb, Inc. (ABNB) and Booking Holdings Inc. (BKNG), both companies exhibit distinct financial strengths and weaknesses. ABNB boasts a higher gross profit margin of 83.08% compared to BKNG’s 100%, yet struggles with a bearish trend and a recent price decline of 16.07%. Analysts have rated ABNB with an A- overall, suggesting strong fundamentals, while BKNG received a B- rating, indicating moderate performance.
In terms of profitability, ABNB’s net income per share is $4.19, whereas BKNG’s stands at a much higher $174.94, reflecting its larger revenue base. Despite BKNG’s higher earnings, it also faces significant debt levels, presenting a risk if market conditions fluctuate.
Recommendation: Investors focused on growth may prefer ABNB for its favorable margins and growth potential, while those prioritizing stability and established profitability might favor BKNG.
Specific risks for ABNB include increasing competition and market dependence, particularly in the travel sector.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Airbnb, Inc. and Booking Holdings Inc. to enhance your investment decisions:
