Analyzing Jet2 (OTCMKTS:DRTGF) and Airbnb (NASDAQ:ABNB)

Jet2 (OTCMKTS:DRTGF) and Airbnb (NASDAQ:ABNB) are both consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Profitability

This table compares Jet2 and Airbnb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jet2	N/A	N/A	N/A
Airbnb	46.11%	34.74%	12.40%

Valuation & Earnings

This table compares Jet2 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
Jet2	N/A	N/A	N/A	$0.22	84.32
Airbnb	$10.51 billion	8.34	$4.79 billion	$7.35	18.57

Airbnb has higher revenue and earnings than Jet2. Airbnb is trading at a lower price-to-earnings ratio than Jet2, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

19.7% of Jet2 shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 27.8% of Airbnb shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Jet2 and Airbnb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jet2	0	0	0	0	N/A
Airbnb	5	19	8	0	2.09

Airbnb has a consensus price target of $135.35, suggesting a potential downside of 0.84%. Given Airbnb’s higher probable upside, analysts clearly believe Airbnb is more favorable than Jet2.

Summary

Airbnb beats Jet2 on 9 of the 10 factors compared between the two stocks.

About Jet2

Jet2 plc, together with its subsidiaries, engages in the leisure travel business primarily in the United Kingdom. The company operates scheduled holiday flights to leisure destinations in the Mediterranean, the Canary Islands, and European Leisure Cities. It is also involved in the package holiday and non-ticket retail activities, as well as passenger and charter aircraft operations. In addition, it engages in the aircraft leasing and financing services. The company was formerly known as Dart Group PLC and changed its name to Jet2 plc in September 2020. Jet2 plc was founded in 1971 and is based in Leeds, the United Kingdom.

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.