Sonder (NASDAQ:SOND – Get Free Report) and Airbnb (NASDAQ:ABNB – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Valuation & Earnings
This table compares Sonder and Airbnb”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonder | $621.27 million | 0.00 | -$224.09 million | ($22.08) | -0.01 |
| Airbnb | $11.10 billion | 6.34 | $2.65 billion | $4.21 | 27.18 |
Volatility and Risk
Sonder has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Institutional & Insider Ownership
45.9% of Sonder shares are owned by institutional investors. Comparatively, 80.8% of Airbnb shares are owned by institutional investors. 3.8% of Sonder shares are owned by company insiders. Comparatively, 27.8% of Airbnb 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.
Profitability
This table compares Sonder and Airbnb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonder | -42.27% | N/A | -22.67% |
| Airbnb | 22.03% | 32.14% | 10.95% |
Analyst Recommendations
This is a summary of current recommendations for Sonder and Airbnb, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonder | 1 | 0 | 0 | 0 | 1.00 |
| Airbnb | 5 | 21 | 11 | 3 | 2.30 |
Airbnb has a consensus price target of $143.31, indicating a potential upside of 25.26%. Given Airbnb’s stronger consensus rating and higher possible upside, analysts clearly believe Airbnb is more favorable than Sonder.
Summary
Airbnb beats Sonder on 14 of the 15 factors compared between the two stocks.
About Sonder
Sonder Holdings Inc. engages in the hospitality business. It operates and manages properties comprising 1-, 2-, and 3+ bedroom; and studio apartments, as well as 1-bedroom hotel rooms for leisure travelers and families, digital nomads, and business travelers in North America, Europe, and the Middle East. The company is headquartered in San Francisco, California.
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.
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