Target Hospitality (NASDAQ:TH – Get Free Report) and Airbnb (NASDAQ:ABNB – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Risk & Volatility
Target Hospitality has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Target Hospitality and Airbnb, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Target Hospitality | 1 | 0 | 4 | 1 | 2.83 |
| Airbnb | 1 | 15 | 27 | 2 | 2.67 |
Target Hospitality presently has a consensus target price of $25.20, suggesting a potential upside of 123.40%. Airbnb has a consensus target price of $195.46, suggesting a potential upside of 6.75%. Given Target Hospitality’s stronger consensus rating and higher possible upside, research analysts clearly believe Target Hospitality is more favorable than Airbnb.
Institutional and Insider Ownership
32.4% of Target Hospitality shares are owned by institutional investors. Comparatively, 80.8% of Airbnb shares are owned by institutional investors. 3.8% of Target Hospitality shares are owned by company insiders. Comparatively, 27.2% of Airbnb shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Target Hospitality and Airbnb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Target Hospitality | -12.23% | -11.92% | -7.85% |
| Airbnb | 23.02% | 38.94% | 12.56% |
Earnings and Valuation
This table compares Target Hospitality and Airbnb”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Target Hospitality | $320.64 million | 3.50 | -$37.12 million | ($0.38) | -29.68 |
| Airbnb | $12.24 billion | 8.96 | $2.51 billion | $5.35 | 34.22 |
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.
Summary
Airbnb beats Target Hospitality on 12 of the 15 factors compared between the two stocks.
About Target Hospitality
Target Hospitality Corporation provides modular accommodations and hospitality services for workers and other groups who need lodging near remote or specialized locations. Its services include lodging, dining, housekeeping, laundry, and recreation, with facilities designed to support extended stays. The company serves customers in industries such as energy and natural resources, as well as government clients. Its operations are primarily in the United States, including locations in the Permian Basin and other areas where traditional lodging may be limited.
About Airbnb
Airbnb operates an online marketplace that connects travelers with hosts offering short-term stays and other travel-related services. Listings include apartments, houses, rooms and distinctive accommodations, with options ranging from brief visits to longer stays. The platform also offers bookable experiences in destinations around the world. Founded in 2007 in San Francisco, Airbnb was started by Brian Chesky, Nathan Blecharczyk and Joe Gebbia. The company serves guests and hosts in more than 220 countries and regions, providing tools for listing properties, managing reservations and handling payments.
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