Seek Returns logo

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

Updated on

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

Company Profile

SymbolABNBCOST
Company NameAirbnb, Inc.Costco Wholesale Corporation
CountryUnited StatesUnited States
GICS SectorConsumer DiscretionaryConsumer Staples
GICS IndustryHotels, Restaurants & LeisureConsumer Staples Distribution & Retail
Market Capitalization79.87 billion USD419.07 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateDecember 10, 2020July 9, 1986
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ABNB and COST 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. COST: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolABNBCOST
5-Day Price Return1.86%0.18%
13-Week Price Return1.69%-6.49%
26-Week Price Return-7.79%-10.64%
52-Week Price Return11.06%6.22%
Month-to-Date Return-1.42%0.39%
Year-to-Date Return-0.67%2.95%
10-Day Avg. Volume3.85M2.35M
3-Month Avg. Volume5.02M2.10M
3-Month Volatility29.37%17.93%
Beta1.130.99

Profitability

Return on Equity (TTM)

ABNB

32.19%

Hotels, Restaurants & Leisure Industry

Max
83.01%
Q3
39.51%
Median
17.38%
Q1
5.32%
Min
-45.92%

ABNB’s Return on Equity of 32.19% is on par with the norm for the Hotels, Restaurants & Leisure industry, indicating its profitability relative to shareholder equity is typical for the sector.

COST

31.13%

Consumer Staples Distribution & Retail Industry

Max
34.20%
Q3
21.61%
Median
13.70%
Q1
5.18%
Min
-9.87%

In the upper quartile for the Consumer Staples Distribution & Retail industry, COST’s Return on Equity of 31.13% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ABNB vs. COST: A comparison of their Return on Equity (TTM) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Net Profit Margin (TTM)

ABNB

22.67%

Hotels, Restaurants & Leisure Industry

Max
26.45%
Q3
14.67%
Median
8.69%
Q1
3.34%
Min
-11.30%

A Net Profit Margin of 22.67% places ABNB in the upper quartile for the Hotels, Restaurants & Leisure industry, signifying strong profitability and more effective cost management than most of its peers.

COST

2.92%

Consumer Staples Distribution & Retail Industry

Max
7.16%
Q3
3.87%
Median
2.44%
Q1
1.65%
Min
-0.70%

COST’s Net Profit Margin of 2.92% is aligned with the median group of its peers in the Consumer Staples Distribution & Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

ABNB vs. COST: A comparison of their Net Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Operating Profit Margin (TTM)

ABNB

22.50%

Hotels, Restaurants & Leisure Industry

Max
38.76%
Q3
21.15%
Median
14.20%
Q1
6.43%
Min
-14.56%

An Operating Profit Margin of 22.50% places ABNB in the upper quartile for the Hotels, Restaurants & Leisure industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

COST

3.75%

Consumer Staples Distribution & Retail Industry

Max
9.42%
Q3
5.29%
Median
4.03%
Q1
2.22%
Min
-1.85%

COST’s Operating Profit Margin of 3.75% is around the midpoint for the Consumer Staples Distribution & Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

ABNB vs. COST: A comparison of their Operating Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Profitability at a Glance

SymbolABNBCOST
Return on Equity (TTM)32.19%31.13%
Return on Assets (TTM)11.03%10.75%
Net Profit Margin (TTM)22.67%2.92%
Operating Profit Margin (TTM)22.50%3.75%
Gross Profit Margin (TTM)72.06%12.78%

Financial Strength

Current Ratio (MRQ)

ABNB

1.23

Hotels, Restaurants & Leisure Industry

Max
2.68
Q3
1.62
Median
1.11
Q1
0.74
Min
0.19

ABNB’s Current Ratio of 1.23 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.

COST

1.02

Consumer Staples Distribution & Retail Industry

Max
1.80
Q3
1.25
Median
0.97
Q1
0.82
Min
0.52

COST’s Current Ratio of 1.02 aligns with the median group of the Consumer Staples Distribution & Retail industry, indicating that its short-term liquidity is in line with its sector peers.

ABNB vs. COST: A comparison of their Current Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ABNB

0.26

Hotels, Restaurants & Leisure Industry

Max
9.88
Q3
4.54
Median
1.52
Q1
0.27
Min
0.00

Falling into the lower quartile for the Hotels, Restaurants & Leisure industry, ABNB’s Debt-to-Equity Ratio of 0.26 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

COST

0.21

Consumer Staples Distribution & Retail Industry

Max
3.44
Q3
1.56
Median
1.00
Q1
0.30
Min
0.00

Falling into the lower quartile for the Consumer Staples Distribution & Retail industry, COST’s Debt-to-Equity Ratio of 0.21 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ABNB vs. COST: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Interest Coverage Ratio (TTM)

ABNB

-3.65

Hotels, Restaurants & Leisure Industry

Max
26.88
Q3
11.95
Median
3.87
Q1
1.19
Min
-11.84

ABNB has a negative Interest Coverage Ratio of -3.65. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

COST

91.27

Consumer Staples Distribution & Retail Industry

Max
24.36
Q3
14.71
Median
6.25
Q1
3.16
Min
-10.70

With an Interest Coverage Ratio of 91.27, COST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Consumer Staples Distribution & Retail industry. This stems from either robust earnings or a conservative debt load.

ABNB vs. COST: A comparison of their Interest Coverage Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Financial Strength at a Glance

SymbolABNBCOST
Current Ratio (MRQ)1.231.02
Quick Ratio (MRQ)1.210.52
Debt-to-Equity Ratio (MRQ)0.260.21
Interest Coverage Ratio (TTM)-3.6591.27

Growth

Revenue Growth

ABNB vs. COST: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ABNB vs. COST: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ABNB

0.00%

Hotels, Restaurants & Leisure Industry

Max
5.88%
Q3
2.37%
Median
0.68%
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.

COST

0.35%

Consumer Staples Distribution & Retail Industry

Max
6.63%
Q3
3.17%
Median
1.35%
Q1
0.00%
Min
0.00%

COST’s Dividend Yield of 0.35% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.

ABNB vs. COST: A comparison of their Dividend Yield (TTM) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Dividend Payout Ratio (TTM)

ABNB

0.00%

Hotels, Restaurants & Leisure Industry

Max
127.31%
Q3
56.79%
Median
19.58%
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.

COST

25.50%

Consumer Staples Distribution & Retail Industry

Max
163.46%
Q3
90.34%
Median
52.13%
Q1
20.46%
Min
0.00%

COST’s Dividend Payout Ratio of 25.50% is within the typical range for the Consumer Staples Distribution & Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ABNB vs. COST: A comparison of their Dividend Payout Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Dividend at a Glance

SymbolABNBCOST
Dividend Yield (TTM)0.00%0.35%
Dividend Payout Ratio (TTM)0.00%25.50%

Valuation

Price-to-Earnings Ratio (TTM)

ABNB

29.57

Hotels, Restaurants & Leisure Industry

Max
59.44
Q3
33.98
Median
22.25
Q1
15.53
Min
7.61

ABNB’s P/E Ratio of 29.57 is within the middle range for the Hotels, Restaurants & Leisure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

COST

56.05

Consumer Staples Distribution & Retail Industry

Max
49.92
Q3
31.34
Median
23.38
Q1
17.55
Min
6.19

At 56.05, COST’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Consumer Staples Distribution & Retail industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ABNB vs. COST: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Price-to-Sales Ratio (TTM)

ABNB

6.70

Hotels, Restaurants & Leisure Industry

Max
7.74
Q3
3.88
Median
2.05
Q1
1.19
Min
0.17

ABNB’s P/S Ratio of 6.70 is in the upper echelon for the Hotels, Restaurants & Leisure 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.

COST

1.64

Consumer Staples Distribution & Retail Industry

Max
1.88
Q3
1.00
Median
0.55
Q1
0.40
Min
0.06

COST’s P/S Ratio of 1.64 is in the upper echelon for the Consumer Staples Distribution & Retail 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.

ABNB vs. COST: A comparison of their Price-to-Sales Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Price-to-Book Ratio (MRQ)

ABNB

10.50

Hotels, Restaurants & Leisure Industry

Max
20.90
Q3
9.78
Median
4.29
Q1
2.22
Min
0.47

ABNB’s P/B Ratio of 10.50 is in the upper tier for the Hotels, Restaurants & Leisure industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

COST

16.62

Consumer Staples Distribution & Retail Industry

Max
9.74
Q3
4.99
Median
2.88
Q1
1.77
Min
0.46

At 16.62, COST’s P/B Ratio is at an extreme premium to the Consumer Staples Distribution & Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ABNB vs. COST: A comparison of their Price-to-Book Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Consumer Staples Distribution & Retail industry benchmarks.

Valuation at a Glance

SymbolABNBCOST
Price-to-Earnings Ratio (TTM)29.5756.05
Price-to-Sales Ratio (TTM)6.701.64
Price-to-Book Ratio (MRQ)10.5016.62
Price-to-Free Cash Flow Ratio (TTM)18.0260.08