Seek Returns logo

ABNB vs. BA: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ABNB and BA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

BA’s market capitalization of 162.80 billion USD is significantly greater than ABNB’s 85.50 billion USD, highlighting its more substantial market valuation.

With betas of 1.14 for ABNB and 1.42 for BA, both stocks show similar sensitivity to overall market movements.

SymbolABNBBA
Company NameAirbnb, Inc.The Boeing Company
CountryUSUS
SectorConsumer CyclicalIndustrials
IndustryTravel ServicesAerospace & Defense
CEOBrian CheskyRobert K. Ortberg
Price136.49 USD215.92 USD
Market Cap85.50 billion USD162.80 billion USD
Beta1.141.42
ExchangeNASDAQNYSE
IPO DateDecember 10, 2020January 2, 1962
ADRNoNo

Historical Performance

This chart compares the performance of ABNB and BA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ABNB vs. BA: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ABNB

30.91%

Travel Services Industry

Max
73.02%
Q3
34.55%
Median
12.42%
Q1
-4.86%
Min
-43.74%

ABNB’s Return on Equity of 30.91% is on par with the norm for the Travel Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

BA

94.43%

Aerospace & Defense Industry

Max
42.57%
Q3
16.67%
Median
8.39%
Q1
-0.77%
Min
-23.36%

BA’s Return on Equity of 94.43% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ABNB vs. BA: A comparison of their ROE against their respective Travel Services and Aerospace & Defense industry benchmarks.

Return on Invested Capital

ABNB

18.96%

Travel Services Industry

Max
20.68%
Q3
16.03%
Median
10.02%
Q1
6.13%
Min
3.60%

In the upper quartile for the Travel Services industry, ABNB’s Return on Invested Capital of 18.96% signifies a highly effective use of its capital to generate profits when compared to its peers.

BA

-16.36%

Aerospace & Defense Industry

Max
23.42%
Q3
8.86%
Median
5.47%
Q1
-5.60%
Min
-22.46%

BA has a negative Return on Invested Capital of -16.36%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

ABNB vs. BA: A comparison of their ROIC against their respective Travel Services and Aerospace & Defense industry benchmarks.

Net Profit Margin

ABNB

22.60%

Travel Services Industry

Max
30.84%
Q3
20.18%
Median
9.77%
Q1
7.81%
Min
-5.69%

A Net Profit Margin of 22.60% places ABNB in the upper quartile for the Travel Services industry, signifying strong profitability and more effective cost management than most of its peers.

BA

-16.58%

Aerospace & Defense Industry

Max
22.67%
Q3
8.04%
Median
4.95%
Q1
-5.07%
Min
-16.58%

BA has a negative Net Profit Margin of -16.58%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

ABNB vs. BA: A comparison of their Net Profit Margin against their respective Travel Services and Aerospace & Defense industry benchmarks.

Operating Profit Margin

ABNB

22.17%

Travel Services Industry

Max
32.49%
Q3
23.05%
Median
17.29%
Q1
11.44%
Min
3.62%

ABNB’s Operating Profit Margin of 22.17% is around the midpoint for the Travel Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

BA

-14.63%

Aerospace & Defense Industry

Max
22.01%
Q3
11.49%
Median
8.96%
Q1
3.77%
Min
-4.96%

BA has a negative Operating Profit Margin of -14.63%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

ABNB vs. BA: A comparison of their Operating Margin against their respective Travel Services and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolABNBBA
Return on Equity (TTM)30.91%94.43%
Return on Assets (TTM)10.13%-7.36%
Return on Invested Capital (TTM)18.96%-16.36%
Net Profit Margin (TTM)22.60%-16.58%
Operating Profit Margin (TTM)22.17%-14.63%
Gross Profit Margin (TTM)83.05%-2.09%

Financial Strength

Current Ratio

ABNB

1.27

Travel Services Industry

Max
1.90
Q3
1.56
Median
1.16
Q1
0.68
Min
0.18

ABNB’s Current Ratio of 1.27 aligns with the median group of the Travel Services industry, indicating that its short-term liquidity is in line with its sector peers.

BA

1.23

Aerospace & Defense Industry

Max
5.13
Q3
3.36
Median
2.16
Q1
1.20
Min
0.41

BA’s Current Ratio of 1.23 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

ABNB vs. BA: A comparison of their Current Ratio against their respective Travel Services and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio

ABNB

0.29

Travel Services Industry

Max
2.53
Q3
2.25
Median
1.87
Q1
0.29
Min
0.20

Falling into the lower quartile for the Travel Services industry, ABNB’s Debt-to-Equity Ratio of 0.29 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

BA

-16.13

Aerospace & Defense Industry

Max
1.20
Q3
0.73
Median
0.51
Q1
0.09
Min
0.00

BA has a Debt-to-Equity Ratio of -16.13, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

ABNB vs. BA: A comparison of their D/E Ratio against their respective Travel Services and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio

ABNB

--

Travel Services Industry

Max
9.48
Q3
6.06
Median
3.05
Q1
2.58
Min
0.53

Interest Coverage Ratio data for ABNB is currently unavailable.

BA

-3.55

Aerospace & Defense Industry

Max
12.62
Q3
7.38
Median
2.95
Q1
1.68
Min
-6.68

BA has a negative Interest Coverage Ratio of -3.55. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

ABNB vs. BA: A comparison of their Interest Coverage against their respective Travel Services and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolABNBBA
Current Ratio (TTM)1.271.23
Quick Ratio (TTM)1.270.37
Debt-to-Equity Ratio (TTM)0.29-16.13
Debt-to-Asset Ratio (TTM)0.090.34
Net Debt-to-EBITDA Ratio (TTM)-2.07-6.18
Interest Coverage Ratio (TTM)---3.55

Growth

The following charts compare key year-over-year (YoY) growth metrics for ABNB and BA. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ABNB vs. BA: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ABNB vs. BA: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ABNB vs. BA: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ABNB

0.00%

Travel Services Industry

Max
4.09%
Q3
0.54%
Median
0.00%
Q1
0.00%
Min
0.00%

ABNB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

BA

0.00%

Aerospace & Defense Industry

Max
6.00%
Q3
0.66%
Median
0.00%
Q1
0.00%
Min
0.00%

BA currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ABNB vs. BA: A comparison of their Dividend Yield against their respective Travel Services and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio

ABNB

0.00%

Travel Services Industry

Max
37.56%
Q3
4.41%
Median
0.00%
Q1
0.00%
Min
0.00%

ABNB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

BA

-0.63%

Aerospace & Defense Industry

Max
172.02%
Q3
32.47%
Median
0.00%
Q1
0.00%
Min
0.00%

BA has a negative Dividend Payout Ratio of -0.63%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.

ABNB vs. BA: A comparison of their Payout Ratio against their respective Travel Services and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolABNBBA
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%-0.63%

Valuation

Price-to-Earnings Ratio

ABNB

33.40

Travel Services Industry

Max
43.15
Q3
34.01
Median
22.22
Q1
16.56
Min
9.02

ABNB’s P/E Ratio of 33.40 is within the middle range for the Travel Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

BA

-14.13

Aerospace & Defense Industry

Max
75.34
Q3
54.40
Median
38.63
Q1
26.10
Min
16.44

BA has a negative P/E Ratio of -14.13. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

ABNB vs. BA: A comparison of their P/E Ratio against their respective Travel Services and Aerospace & Defense industry benchmarks.

Forward P/E to Growth Ratio

ABNB

1.66

Travel Services Industry

Max
2.37
Q3
1.61
Median
1.00
Q1
0.54
Min
0.02

A Forward PEG Ratio of 1.66 places ABNB in the upper quartile for the Travel Services industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

BA

-6.47

Aerospace & Defense Industry

Max
10.68
Q3
5.36
Median
2.31
Q1
1.47
Min
0.01

BA has a negative Forward PEG Ratio of -6.47. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.

ABNB vs. BA: A comparison of their Forward PEG Ratio against their respective Travel Services and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio

ABNB

7.61

Travel Services Industry

Max
7.69
Q3
5.64
Median
2.87
Q1
0.93
Min
0.41

ABNB’s P/S Ratio of 7.61 is in the upper echelon for the Travel Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

BA

2.34

Aerospace & Defense Industry

Max
19.34
Q3
9.54
Median
2.71
Q1
1.59
Min
0.35

BA’s P/S Ratio of 2.34 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ABNB vs. BA: A comparison of their P/S Ratio against their respective Travel Services and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio

ABNB

10.68

Travel Services Industry

Max
10.52
Q3
10.49
Median
9.35
Q1
4.57
Min
1.91

The P/B Ratio is often not a primary valuation metric for the Travel Services industry.

BA

-48.92

Aerospace & Defense Industry

Max
16.08
Q3
8.12
Median
4.12
Q1
2.69
Min
0.69

BA has a negative P/B Ratio of -48.92, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.

ABNB vs. BA: A comparison of their P/B Ratio against their respective Travel Services and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolABNBBA
Price-to-Earnings Ratio (P/E, TTM)33.40-14.13
Forward PEG Ratio (TTM)1.66-6.47
Price-to-Sales Ratio (P/S, TTM)7.612.34
Price-to-Book Ratio (P/B, TTM)10.68-48.92
Price-to-Free Cash Flow Ratio (P/FCF, TTM)19.50-12.76
EV-to-EBITDA (TTM)31.25-29.33
EV-to-Sales (TTM)7.142.97