Financial Review: TUI (OTCMKTS:TUIFF) and Airbnb (NASDAQ:ABNB)

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

Analyst Recommendations

This is a summary of current ratings for Airbnb and TUI, as reported by MarketBeat.

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

Airbnb currently has a consensus price target of $135.35, suggesting a potential downside of 0.81%. Given Airbnb’s higher probable upside, equities research analysts clearly believe Airbnb is more favorable than TUI.

Insider & Institutional Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 13.6% of TUI 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, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$9.92 billion	8.83	$4.79 billion	$7.35	18.57
TUI	N/A	N/A	N/A	$0.31	26.94

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

Profitability

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

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

Summary

Airbnb beats TUI on 9 of the 10 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 TUI

TUI AG, together with its subsidiaries, provides tourism services worldwide. It operates hotels and resorts under the Royalton, Mora, RIU Hotels & Resorts, Robinson, TUI Blue, TUI Magic Life, Atlantica Hotels & Resorts, Grupotel, Iberotel, Akra Hotels, TUI Suneo, and AQI brands. The company is also involved in the tour operation and airlines businesses. In addition, it operates cruise ships under the Hapag-Lloyd Cruises and Marella brands. The company operates travel agencies and online portals; aircraft; and cruise ships. The company was formerly known as Preussag AG and changed its name to TUI AG in June 2002. TUI AG was founded in 1968 and is headquartered in Hanover, Germany.