Seek Returns logo

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

Updated on

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

Company Overview

LLY’s market capitalization of 739.87 billion USD is significantly greater than ABNB’s 85.50 billion USD, highlighting its more substantial market valuation.

ABNB’s beta of 1.14 points to significantly higher volatility compared to LLY (beta: 0.39), suggesting ABNB has greater potential for both gains and losses relative to market movements.

SymbolABNBLLY
Company NameAirbnb, Inc.Eli Lilly and Company
CountryUSUS
SectorConsumer CyclicalHealthcare
IndustryTravel ServicesDrug Manufacturers - General
CEOBrian CheskyDavid A. Ricks
Price136.49 USD780.67 USD
Market Cap85.50 billion USD739.87 billion USD
Beta1.140.39
ExchangeNASDAQNYSE
IPO DateDecember 10, 2020June 1, 1972
ADRNoNo

Historical Performance

This chart compares the performance of ABNB and LLY 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. LLY: 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.

LLY

76.92%

Drug Manufacturers - General Industry

Max
95.59%
Q3
76.92%
Median
30.71%
Q1
8.97%
Min
-14.85%

LLY’s Return on Equity of 76.92% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.

ABNB vs. LLY: A comparison of their ROE against their respective Travel Services and Drug Manufacturers - General 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.

LLY

25.72%

Drug Manufacturers - General Industry

Max
25.72%
Q3
17.89%
Median
11.47%
Q1
9.39%
Min
2.87%

In the upper quartile for the Drug Manufacturers - General industry, LLY’s Return on Invested Capital of 25.72% signifies a highly effective use of its capital to generate profits when compared to its peers.

ABNB vs. LLY: A comparison of their ROIC against their respective Travel Services and Drug Manufacturers - General 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.

LLY

22.66%

Drug Manufacturers - General Industry

Max
34.51%
Q3
23.04%
Median
14.73%
Q1
11.78%
Min
2.18%

LLY’s Net Profit Margin of 22.66% is aligned with the median group of its peers in the Drug Manufacturers - General industry. This indicates its ability to convert revenue into profit is typical for the sector.

ABNB vs. LLY: A comparison of their Net Profit Margin against their respective Travel Services and Drug Manufacturers - General 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.

LLY

40.70%

Drug Manufacturers - General Industry

Max
40.70%
Q3
28.90%
Median
23.41%
Q1
19.05%
Min
16.13%

An Operating Profit Margin of 40.70% places LLY in the upper quartile for the Drug Manufacturers - General industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ABNB vs. LLY: A comparison of their Operating Margin against their respective Travel Services and Drug Manufacturers - General industry benchmarks.

Profitability at a Glance

SymbolABNBLLY
Return on Equity (TTM)30.91%76.92%
Return on Assets (TTM)10.13%12.42%
Return on Invested Capital (TTM)18.96%25.72%
Net Profit Margin (TTM)22.60%22.66%
Operating Profit Margin (TTM)22.17%40.70%
Gross Profit Margin (TTM)83.05%81.70%

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.

LLY

1.37

Drug Manufacturers - General Industry

Max
1.67
Q3
1.37
Median
1.26
Q1
0.87
Min
0.39

LLY’s Current Ratio of 1.37 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.

ABNB vs. LLY: A comparison of their Current Ratio against their respective Travel Services and Drug Manufacturers - General 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.

LLY

2.44

Drug Manufacturers - General Industry

Max
2.95
Q3
2.44
Median
0.86
Q1
0.68
Min
0.09

LLY’s Debt-to-Equity Ratio of 2.44 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ABNB vs. LLY: A comparison of their D/E Ratio against their respective Travel Services and Drug Manufacturers - General 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.

LLY

23.61

Drug Manufacturers - General Industry

Max
27.46
Q3
14.40
Median
7.80
Q1
4.07
Min
1.67

LLY’s Interest Coverage Ratio of 23.61 is in the upper quartile for the Drug Manufacturers - General industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ABNB vs. LLY: A comparison of their Interest Coverage against their respective Travel Services and Drug Manufacturers - General industry benchmarks.

Financial Strength at a Glance

SymbolABNBLLY
Current Ratio (TTM)1.271.37
Quick Ratio (TTM)1.271.06
Debt-to-Equity Ratio (TTM)0.292.44
Debt-to-Asset Ratio (TTM)0.090.43
Net Debt-to-EBITDA Ratio (TTM)-2.072.18
Interest Coverage Ratio (TTM)--23.61

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ABNB vs. LLY: 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.

LLY

0.72%

Drug Manufacturers - General Industry

Max
8.72%
Q3
4.10%
Median
3.34%
Q1
1.89%
Min
0.00%

LLY’s Dividend Yield of 0.72% is in the lower quartile for the Drug Manufacturers - General industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ABNB vs. LLY: A comparison of their Dividend Yield against their respective Travel Services and Drug Manufacturers - General 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.

LLY

43.74%

Drug Manufacturers - General Industry

Max
266.46%
Q3
78.91%
Median
60.27%
Q1
43.74%
Min
0.00%

LLY’s Dividend Payout Ratio of 43.74% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ABNB vs. LLY: A comparison of their Payout Ratio against their respective Travel Services and Drug Manufacturers - General industry benchmarks.

Dividend at a Glance

SymbolABNBLLY
Dividend Yield (TTM)0.00%0.72%
Dividend Payout Ratio (TTM)0.00%43.74%

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.

LLY

63.17

Drug Manufacturers - General Industry

Max
27.96
Q3
25.84
Median
18.32
Q1
16.65
Min
3.39

At 63.17, LLY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Drug Manufacturers - General 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. LLY: A comparison of their P/E Ratio against their respective Travel Services and Drug Manufacturers - General 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.

LLY

2.81

Drug Manufacturers - General Industry

Max
3.10
Q3
3.09
Median
2.72
Q1
2.18
Min
1.02

LLY’s Forward PEG Ratio of 2.81 is within the middle range of its peers in the Drug Manufacturers - General industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ABNB vs. LLY: A comparison of their Forward PEG Ratio against their respective Travel Services and Drug Manufacturers - General 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.

LLY

15.10

Drug Manufacturers - General Industry

Max
6.47
Q3
4.47
Median
3.53
Q1
1.96
Min
0.41

With a P/S Ratio of 15.10, LLY trades at a valuation that eclipses even the highest in the Drug Manufacturers - General industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ABNB vs. LLY: A comparison of their P/S Ratio against their respective Travel Services and Drug Manufacturers - General 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.

LLY

44.50

Drug Manufacturers - General Industry

Max
7.80
Q3
7.80
Median
5.30
Q1
4.06
Min
1.08

The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.

ABNB vs. LLY: A comparison of their P/B Ratio against their respective Travel Services and Drug Manufacturers - General industry benchmarks.

Valuation at a Glance

SymbolABNBLLY
Price-to-Earnings Ratio (P/E, TTM)33.4063.17
Forward PEG Ratio (TTM)1.662.81
Price-to-Sales Ratio (P/S, TTM)7.6115.10
Price-to-Book Ratio (P/B, TTM)10.6844.50
Price-to-Free Cash Flow Ratio (P/FCF, TTM)19.501518.61
EV-to-EBITDA (TTM)31.2547.64
EV-to-Sales (TTM)7.1415.82