Seek Returns logo

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

Updated on

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

Company Overview

ABNB’s market capitalization stands at 85.50 billion USD, while RCL’s is 90.83 billion USD, indicating their market valuations are broadly comparable.

RCL carries a higher beta at 2.15, indicating it’s more sensitive to market moves, while ABNB (beta: 1.14) exhibits greater stability.

SymbolABNBRCL
Company NameAirbnb, Inc.Royal Caribbean Cruises Ltd.
CountryUSUS
SectorConsumer CyclicalConsumer Cyclical
IndustryTravel ServicesTravel Services
CEOBrian CheskyJason T. Liberty
Price136.49 USD334.48 USD
Market Cap85.50 billion USD90.83 billion USD
Beta1.142.15
ExchangeNASDAQNYSE
IPO DateDecember 10, 2020April 28, 1993
ADRNoNo

Historical Performance

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

RCL

45.45%

Travel Services Industry

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

In the upper quartile for the Travel Services industry, RCL’s Return on Equity of 45.45% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ABNB vs. RCL: A comparison of their ROE against the Travel Services industry benchmark.

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.

RCL

15.06%

Travel Services Industry

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

RCL’s Return on Invested Capital of 15.06% is in line with the norm for the Travel Services industry, reflecting a standard level of efficiency in generating profits from its capital base.

ABNB vs. RCL: A comparison of their ROIC against the Travel Services industry benchmark.

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.

RCL

19.38%

Travel Services Industry

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

RCL’s Net Profit Margin of 19.38% is aligned with the median group of its peers in the Travel Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

ABNB vs. RCL: A comparison of their Net Profit Margin against the Travel Services industry benchmark.

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.

RCL

25.67%

Travel Services Industry

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

An Operating Profit Margin of 25.67% places RCL in the upper quartile for the Travel Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ABNB vs. RCL: A comparison of their Operating Margin against the Travel Services industry benchmark.

Profitability at a Glance

SymbolABNBRCL
Return on Equity (TTM)30.91%45.45%
Return on Assets (TTM)10.13%8.67%
Return on Invested Capital (TTM)18.96%15.06%
Net Profit Margin (TTM)22.60%19.38%
Operating Profit Margin (TTM)22.17%25.67%
Gross Profit Margin (TTM)83.05%48.23%

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.

RCL

0.18

Travel Services Industry

Max
1.90
Q3
1.56
Median
1.16
Q1
0.68
Min
0.18

RCL’s Current Ratio of 0.18 falls into the lower quartile for the Travel Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ABNB vs. RCL: A comparison of their Current Ratio against the Travel Services industry benchmark.

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.

RCL

2.53

Travel Services Industry

Max
2.53
Q3
2.25
Median
1.87
Q1
0.29
Min
0.20

RCL’s leverage is in the upper quartile of the Travel Services industry, with a Debt-to-Equity Ratio of 2.53. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ABNB vs. RCL: A comparison of their D/E Ratio against the Travel Services industry benchmark.

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.

RCL

3.04

Travel Services Industry

Max
9.48
Q3
6.06
Median
3.05
Q1
2.58
Min
0.53

RCL’s Interest Coverage Ratio of 3.04 is positioned comfortably within the norm for the Travel Services industry, indicating a standard and healthy capacity to cover its interest payments.

ABNB vs. RCL: A comparison of their Interest Coverage against the Travel Services industry benchmark.

Financial Strength at a Glance

SymbolABNBRCL
Current Ratio (TTM)1.270.18
Quick Ratio (TTM)1.270.15
Debt-to-Equity Ratio (TTM)0.292.53
Debt-to-Asset Ratio (TTM)0.090.54
Net Debt-to-EBITDA Ratio (TTM)-2.073.13
Interest Coverage Ratio (TTM)--3.04

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ABNB vs. RCL: 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.

RCL

0.73%

Travel Services Industry

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

With a Dividend Yield of 0.73%, RCL offers a more attractive income stream than most of its peers in the Travel Services industry, signaling a strong commitment to shareholder returns.

ABNB vs. RCL: A comparison of their Dividend Yield against the Travel Services industry benchmark.

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.

RCL

4.56%

Travel Services Industry

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

RCL’s Dividend Payout Ratio of 4.56% is in the upper quartile for the Travel Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ABNB vs. RCL: A comparison of their Payout Ratio against the Travel Services industry benchmark.

Dividend at a Glance

SymbolABNBRCL
Dividend Yield (TTM)0.00%0.73%
Dividend Payout Ratio (TTM)0.00%4.56%

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.

RCL

27.71

Travel Services Industry

Max
43.15
Q3
34.01
Median
22.22
Q1
16.56
Min
9.02

RCL’s P/E Ratio of 27.71 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.

ABNB vs. RCL: A comparison of their P/E Ratio against the Travel Services industry benchmark.

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.

RCL

1.65

Travel Services Industry

Max
2.37
Q3
1.61
Median
1.00
Q1
0.54
Min
0.02

A Forward PEG Ratio of 1.65 places RCL 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.

ABNB vs. RCL: A comparison of their Forward PEG Ratio against the Travel Services industry benchmark.

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.

RCL

5.42

Travel Services Industry

Max
7.69
Q3
5.64
Median
2.87
Q1
0.93
Min
0.41

RCL’s P/S Ratio of 5.42 aligns with the market consensus for the Travel Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ABNB vs. RCL: A comparison of their P/S Ratio against the Travel Services industry benchmark.

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.

RCL

11.30

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.

ABNB vs. RCL: A comparison of their P/B Ratio against the Travel Services industry benchmark.

Valuation at a Glance

SymbolABNBRCL
Price-to-Earnings Ratio (P/E, TTM)33.4027.71
Forward PEG Ratio (TTM)1.661.65
Price-to-Sales Ratio (P/S, TTM)7.615.42
Price-to-Book Ratio (P/B, TTM)10.6811.30
Price-to-Free Cash Flow Ratio (P/FCF, TTM)19.5043.05
EV-to-EBITDA (TTM)31.2517.55
EV-to-Sales (TTM)7.146.60