Comparing Airbnb (NASDAQ:ABNB) and Marriott Vacations Worldwide (NYSE:VAC)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Marriott Vacations Worldwide and Airbnb, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott Vacations Worldwide	4	1	6	1	2.33
Airbnb	1	13	21	2	2.65

Marriott Vacations Worldwide currently has a consensus price target of $80.70, indicating a potential downside of 4.78%. Airbnb has a consensus price target of $157.67, indicating a potential upside of 18.27%. Given Airbnb’s stronger consensus rating and higher probable upside, analysts plainly believe Airbnb is more favorable than Marriott Vacations Worldwide.

Insider & Institutional Ownership

89.5% of Marriott Vacations Worldwide shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 13.3% of Marriott Vacations Worldwide shares are held by insiders. Comparatively, 27.2% of Airbnb shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Marriott Vacations Worldwide has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Valuation and Earnings

This table compares Marriott Vacations Worldwide and Airbnb”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott Vacations Worldwide	$5.03 billion	0.58	-$308.00 million	($10.09)	-8.40
Airbnb	$12.24 billion	6.56	$2.51 billion	$4.06	32.83

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

Profitability

This table compares Marriott Vacations Worldwide and Airbnb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marriott Vacations Worldwide	-6.72%	11.37%	2.58%
Airbnb	19.90%	31.24%	10.16%

Summary

Airbnb beats Marriott Vacations Worldwide on 13 of the 14 factors compared between the two stocks.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation, a vacation company, develops, markets, sells, and manages vacation ownership and related businesses, products, and services in the United States and internationally. It operates through two segments, Vacation Ownership and Exchange & Third-Party Management. The company manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Vacation Club, and Marriott Vacation Club Pulse brands. It develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, the company offers exchange networks and membership programs, as well as provision of management services to other resorts and lodging properties through Interval International, and Aqua-Aston business brands. Further, it provides financing consumer purchases of vacation ownership products, and renting vacation ownership inventory. The company sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. The company was founded in 1984 and is headquartered in Orlando, 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.