Target Hospitality (NASDAQ:TH) versus Airbnb (NASDAQ:ABNB) Head to Head Comparison

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

Volatility and Risk

Airbnb has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.

Insider and Institutional Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 32.4% of Target Hospitality shares are held by institutional investors. 27.9% of Airbnb shares are held by insiders. Comparatively, 68.0% of Target Hospitality shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Airbnb and Target Hospitality”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$11.10 billion	6.81	$2.65 billion	$4.21	28.90
Target Hospitality	$314.55 million	2.02	$71.26 million	($0.11)	-57.82

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Airbnb and Target Hospitality, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	5	20	11	3	2.31
Target Hospitality	1	1	2	1	2.60

Airbnb currently has a consensus price target of $143.31, indicating a potential upside of 17.76%. Target Hospitality has a consensus price target of $13.00, indicating a potential upside of 104.40%. Given Target Hospitality’s stronger consensus rating and higher probable upside, analysts plainly believe Target Hospitality is more favorable than Airbnb.

Profitability

This table compares Airbnb and Target Hospitality’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%
Target Hospitality	-3.08%	-1.78%	-1.24%

Summary

Airbnb beats Target Hospitality on 11 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 Target Hospitality

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.