Seek Returns logo

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

Updated on

Here’s a clear look at ABNB and SBUX, 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 SBUX’s is 107.32 billion USD, indicating their market valuations are broadly comparable.

With betas of 1.14 for ABNB and 0.99 for SBUX, both stocks show similar sensitivity to overall market movements.

SymbolABNBSBUX
Company NameAirbnb, Inc.Starbucks Corporation
CountryUSUS
SectorConsumer CyclicalConsumer Cyclical
IndustryTravel ServicesRestaurants
CEOBrian CheskyBrian R. Niccol
Price136.49 USD94.44 USD
Market Cap85.50 billion USD107.32 billion USD
Beta1.140.99
ExchangeNASDAQNASDAQ
IPO DateDecember 10, 2020June 26, 1992
ADRNoNo

Historical Performance

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

SBUX

-41.05%

Restaurants Industry

Max
83.01%
Q3
24.17%
Median
4.72%
Q1
-17.91%
Min
-41.05%

SBUX has a negative Return on Equity of -41.05%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

ABNB vs. SBUX: A comparison of their ROE against their respective Travel Services and Restaurants 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.

SBUX

13.85%

Restaurants Industry

Max
38.20%
Q3
18.01%
Median
7.53%
Q1
3.71%
Min
-16.20%

SBUX’s Return on Invested Capital of 13.85% is in line with the norm for the Restaurants industry, reflecting a standard level of efficiency in generating profits from its capital base.

ABNB vs. SBUX: A comparison of their ROIC against their respective Travel Services and Restaurants 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.

SBUX

8.61%

Restaurants Industry

Max
18.42%
Q3
9.58%
Median
4.33%
Q1
1.40%
Min
-4.06%

SBUX’s Net Profit Margin of 8.61% is aligned with the median group of its peers in the Restaurants industry. This indicates its ability to convert revenue into profit is typical for the sector.

ABNB vs. SBUX: A comparison of their Net Profit Margin against their respective Travel Services and Restaurants 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.

SBUX

12.51%

Restaurants Industry

Max
25.80%
Q3
13.59%
Median
8.04%
Q1
2.94%
Min
-4.23%

SBUX’s Operating Profit Margin of 12.51% is around the midpoint for the Restaurants industry, indicating that its efficiency in managing core business operations is typical for the sector.

ABNB vs. SBUX: A comparison of their Operating Margin against their respective Travel Services and Restaurants industry benchmarks.

Profitability at a Glance

SymbolABNBSBUX
Return on Equity (TTM)30.91%-41.05%
Return on Assets (TTM)10.13%9.89%
Return on Invested Capital (TTM)18.96%13.85%
Net Profit Margin (TTM)22.60%8.61%
Operating Profit Margin (TTM)22.17%12.51%
Gross Profit Margin (TTM)83.05%24.97%

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.

SBUX

0.64

Restaurants Industry

Max
3.56
Q3
1.94
Median
0.97
Q1
0.49
Min
0.25

SBUX’s Current Ratio of 0.64 aligns with the median group of the Restaurants industry, indicating that its short-term liquidity is in line with its sector peers.

ABNB vs. SBUX: A comparison of their Current Ratio against their respective Travel Services and Restaurants 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.

SBUX

-3.41

Restaurants Industry

Max
5.12
Q3
2.53
Median
1.33
Q1
0.59
Min
0.08

SBUX has a Debt-to-Equity Ratio of -3.41, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

ABNB vs. SBUX: A comparison of their D/E Ratio against their respective Travel Services and Restaurants 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.

SBUX

8.49

Restaurants Industry

Max
11.10
Q3
7.32
Median
4.00
Q1
2.29
Min
1.00

SBUX’s Interest Coverage Ratio of 8.49 is in the upper quartile for the Restaurants industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ABNB vs. SBUX: A comparison of their Interest Coverage against their respective Travel Services and Restaurants industry benchmarks.

Financial Strength at a Glance

SymbolABNBSBUX
Current Ratio (TTM)1.270.64
Quick Ratio (TTM)1.270.45
Debt-to-Equity Ratio (TTM)0.29-3.41
Debt-to-Asset Ratio (TTM)0.090.82
Net Debt-to-EBITDA Ratio (TTM)-2.073.68
Interest Coverage Ratio (TTM)--8.49

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ABNB vs. SBUX: 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.

SBUX

2.54%

Restaurants Industry

Max
10.46%
Q3
2.49%
Median
1.37%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.54%, SBUX offers a more attractive income stream than most of its peers in the Restaurants industry, signaling a strong commitment to shareholder returns.

ABNB vs. SBUX: A comparison of their Dividend Yield against their respective Travel Services and Restaurants 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.

SBUX

85.54%

Restaurants Industry

Max
110.09%
Q3
54.11%
Median
17.30%
Q1
0.00%
Min
0.00%

SBUX’s Dividend Payout Ratio of 85.54% is in the upper quartile for the Restaurants 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. SBUX: A comparison of their Payout Ratio against their respective Travel Services and Restaurants industry benchmarks.

Dividend at a Glance

SymbolABNBSBUX
Dividend Yield (TTM)0.00%2.54%
Dividend Payout Ratio (TTM)0.00%85.54%

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.

SBUX

34.29

Restaurants Industry

Max
80.02
Q3
47.50
Median
25.49
Q1
18.87
Min
6.59

SBUX’s P/E Ratio of 34.29 is within the middle range for the Restaurants 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. SBUX: A comparison of their P/E Ratio against their respective Travel Services and Restaurants 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.

SBUX

1.79

Restaurants Industry

Max
5.62
Q3
3.07
Median
2.17
Q1
1.21
Min
0.01

SBUX’s Forward PEG Ratio of 1.79 is within the middle range of its peers in the Restaurants industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ABNB vs. SBUX: A comparison of their Forward PEG Ratio against their respective Travel Services and Restaurants 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.

SBUX

2.95

Restaurants Industry

Max
6.46
Q3
3.53
Median
2.09
Q1
0.83
Min
0.19

SBUX’s P/S Ratio of 2.95 aligns with the market consensus for the Restaurants industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ABNB vs. SBUX: A comparison of their P/S Ratio against their respective Travel Services and Restaurants 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.

SBUX

-14.07

Restaurants Industry

Max
21.36
Q3
11.74
Median
4.38
Q1
1.93
Min
0.75

SBUX has a negative P/B Ratio of -14.07, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.

ABNB vs. SBUX: A comparison of their P/B Ratio against their respective Travel Services and Restaurants industry benchmarks.

Valuation at a Glance

SymbolABNBSBUX
Price-to-Earnings Ratio (P/E, TTM)33.4034.29
Forward PEG Ratio (TTM)1.661.79
Price-to-Sales Ratio (P/S, TTM)7.612.95
Price-to-Book Ratio (P/B, TTM)10.68-14.07
Price-to-Free Cash Flow Ratio (P/FCF, TTM)19.5038.81
EV-to-EBITDA (TTM)31.2520.63
EV-to-Sales (TTM)7.143.59