ABNB vs. SPOT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABNB and SPOT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
SPOT’s market capitalization of 145.67 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 1.66 for SPOT, both stocks show similar sensitivity to overall market movements.
| Symbol | ABNB | SPOT |
|---|---|---|
| Company Name | Airbnb, Inc. | Spotify Technology S.A. |
| Country | US | LU |
| Sector | Consumer Cyclical | Communication Services |
| Industry | Travel Services | Internet Content & Information |
| CEO | Brian Chesky | Daniel G. Ek |
| Price | 136.49 USD | 725.05 USD |
| Market Cap | 85.50 billion USD | 145.67 billion USD |
| Beta | 1.14 | 1.66 |
| Exchange | NASDAQ | NYSE |
| IPO Date | December 10, 2020 | April 3, 2018 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ABNB and SPOT 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.
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.
SPOT
22.57%
Internet Content & Information Industry
- Max
- 42.68%
- Q3
- 9.10%
- Median
- 3.28%
- Q1
- -14.17%
- Min
- -26.11%
In the upper quartile for the Internet Content & Information industry, SPOT’s Return on Equity of 22.57% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
SPOT
15.89%
Internet Content & Information Industry
- Max
- 31.34%
- Q3
- 14.95%
- Median
- 3.03%
- Q1
- -6.25%
- Min
- -25.52%
In the upper quartile for the Internet Content & Information industry, SPOT’s Return on Invested Capital of 15.89% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
SPOT
7.19%
Internet Content & Information Industry
- Max
- 39.11%
- Q3
- 15.31%
- Median
- 4.00%
- Q1
- -6.97%
- Min
- -36.95%
SPOT’s Net Profit Margin of 7.19% is aligned with the median group of its peers in the Internet Content & Information industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
SPOT
10.51%
Internet Content & Information Industry
- Max
- 42.92%
- Q3
- 15.51%
- Median
- 2.63%
- Q1
- -6.98%
- Min
- -18.41%
SPOT’s Operating Profit Margin of 10.51% is around the midpoint for the Internet Content & Information industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ABNB | SPOT |
|---|---|---|
| Return on Equity (TTM) | 30.91% | 22.57% |
| Return on Assets (TTM) | 10.13% | 9.19% |
| Return on Invested Capital (TTM) | 18.96% | 15.89% |
| Net Profit Margin (TTM) | 22.60% | 7.19% |
| Operating Profit Margin (TTM) | 22.17% | 10.51% |
| Gross Profit Margin (TTM) | 83.05% | 30.97% |
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.
SPOT
1.48
Internet Content & Information Industry
- Max
- 7.37
- Q3
- 3.97
- Median
- 2.42
- Q1
- 1.67
- Min
- 0.33
SPOT’s Current Ratio of 1.48 falls into the lower quartile for the Internet Content & Information industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
SPOT
0.34
Internet Content & Information Industry
- Max
- 0.55
- Q3
- 0.49
- Median
- 0.14
- Q1
- 0.03
- Min
- 0.00
SPOT’s Debt-to-Equity Ratio of 0.34 is typical for the Internet Content & Information industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
SPOT
19.61
Internet Content & Information Industry
- Max
- 26.56
- Q3
- 12.92
- Median
- 3.11
- Q1
- -5.03
- Min
- -16.11
SPOT’s Interest Coverage Ratio of 19.61 is in the upper quartile for the Internet Content & Information industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ABNB | SPOT |
|---|---|---|
| Current Ratio (TTM) | 1.27 | 1.48 |
| Quick Ratio (TTM) | 1.27 | 1.48 |
| Debt-to-Equity Ratio (TTM) | 0.29 | 0.34 |
| Debt-to-Asset Ratio (TTM) | 0.09 | 0.17 |
| Net Debt-to-EBITDA Ratio (TTM) | -2.07 | -1.80 |
| Interest Coverage Ratio (TTM) | -- | 19.61 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABNB and SPOT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
SPOT
0.00%
Internet Content & Information Industry
- Max
- 8.40%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SPOT 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.
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.
SPOT
0.00%
Internet Content & Information Industry
- Max
- 112.27%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SPOT 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.
Dividend at a Glance
| Symbol | ABNB | SPOT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
SPOT
107.96
Internet Content & Information Industry
- Max
- 56.51
- Q3
- 39.89
- Median
- 18.31
- Q1
- 10.09
- Min
- 0.08
At 107.96, SPOT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Internet Content & Information industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
SPOT
5.98
Internet Content & Information Industry
- Max
- 4.26
- Q3
- 2.09
- Median
- 0.83
- Q1
- 0.47
- Min
- 0.01
SPOT’s Forward PEG Ratio of 5.98 is exceptionally high for the Internet Content & Information industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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.
SPOT
7.62
Internet Content & Information Industry
- Max
- 10.83
- Q3
- 6.47
- Median
- 2.35
- Q1
- 0.97
- Min
- 0.66
SPOT’s P/S Ratio of 7.62 is in the upper echelon for the Internet Content & Information 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.
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.
SPOT
20.15
Internet Content & Information Industry
- Max
- 12.17
- Q3
- 6.35
- Median
- 2.86
- Q1
- 0.91
- Min
- 0.02
The P/B Ratio is often not a primary valuation metric for the Internet Content & Information industry.
Valuation at a Glance
| Symbol | ABNB | SPOT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 33.40 | 107.96 |
| Forward PEG Ratio (TTM) | 1.66 | 5.98 |
| Price-to-Sales Ratio (P/S, TTM) | 7.61 | 7.62 |
| Price-to-Book Ratio (P/B, TTM) | 10.68 | 20.15 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 19.50 | 47.16 |
| EV-to-EBITDA (TTM) | 31.25 | 74.51 |
| EV-to-Sales (TTM) | 7.14 | 7.44 |