ABNB vs. WFC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABNB and WFC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
WFC’s market capitalization of 272.05 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 1.16 for WFC, both stocks show similar sensitivity to overall market movements.
| Symbol | ABNB | WFC |
|---|---|---|
| Company Name | Airbnb, Inc. | Wells Fargo & Company |
| Country | US | US |
| Sector | Consumer Cyclical | Financial Services |
| Industry | Travel Services | Banks - Diversified |
| CEO | Brian Chesky | Charles W. Scharf |
| Price | 136.49 USD | 83.6 USD |
| Market Cap | 85.50 billion USD | 272.05 billion USD |
| Beta | 1.14 | 1.16 |
| Exchange | NASDAQ | NYSE |
| IPO Date | December 10, 2020 | June 1, 1972 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ABNB and WFC 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.
WFC
11.11%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.73%
- Median
- 12.33%
- Q1
- 9.14%
- Min
- 5.86%
WFC’s Return on Equity of 11.11% is on par with the norm for the Banks - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
WFC
3.42%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 2.95%
- Median
- 1.89%
- Q1
- 0.86%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.
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.
WFC
16.19%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.40%
- Median
- 19.24%
- Q1
- 14.99%
- Min
- 7.95%
WFC’s Net Profit Margin of 16.19% is aligned with the median group of its peers in the Banks - Diversified 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.
WFC
18.70%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.76%
- Median
- 28.44%
- Q1
- 15.73%
- Min
- 8.60%
WFC’s Operating Profit Margin of 18.70% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ABNB | WFC |
|---|---|---|
| Return on Equity (TTM) | 30.91% | 11.11% |
| Return on Assets (TTM) | 10.13% | 1.03% |
| Return on Invested Capital (TTM) | 18.96% | 3.42% |
| Net Profit Margin (TTM) | 22.60% | 16.19% |
| Operating Profit Margin (TTM) | 22.17% | 18.70% |
| Gross Profit Margin (TTM) | 83.05% | 62.53% |
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.
WFC
0.27
Banks - Diversified Industry
- Max
- 0.67
- Q3
- 0.49
- Median
- 0.39
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
WFC
1.73
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.65
- Median
- 3.13
- Q1
- 1.73
- Min
- 0.09
WFC’s Debt-to-Equity Ratio of 1.73 is typical for the Banks - Diversified 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.
WFC
0.55
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.78
- Median
- 0.55
- Q1
- 0.31
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
Financial Strength at a Glance
| Symbol | ABNB | WFC |
|---|---|---|
| Current Ratio (TTM) | 1.27 | 0.27 |
| Quick Ratio (TTM) | 1.27 | 0.27 |
| Debt-to-Equity Ratio (TTM) | 0.29 | 1.73 |
| Debt-to-Asset Ratio (TTM) | 0.09 | 0.16 |
| Net Debt-to-EBITDA Ratio (TTM) | -2.07 | 4.43 |
| Interest Coverage Ratio (TTM) | -- | 0.55 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABNB and WFC. 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.
WFC
1.91%
Banks - Diversified Industry
- Max
- 7.73%
- Q3
- 4.16%
- Median
- 3.24%
- Q1
- 2.27%
- Min
- 0.00%
WFC’s Dividend Yield of 1.91% is in the lower quartile for the Banks - Diversified industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
WFC
31.63%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
WFC’s Dividend Payout Ratio of 31.63% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ABNB | WFC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.91% |
| Dividend Payout Ratio (TTM) | 0.00% | 31.63% |
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.
WFC
13.71
Banks - Diversified Industry
- Max
- 14.13
- Q3
- 13.37
- Median
- 11.90
- Q1
- 9.29
- Min
- 7.43
A P/E Ratio of 13.71 places WFC in the upper quartile for the Banks - Diversified industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
WFC
0.72
Banks - Diversified Industry
- Max
- 1.98
- Q3
- 1.41
- Median
- 1.15
- Q1
- 0.77
- Min
- 0.45
In the lower quartile for the Banks - Diversified industry, WFC’s Forward PEG Ratio of 0.72 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
WFC
2.20
Banks - Diversified Industry
- Max
- 4.15
- Q3
- 2.92
- Median
- 2.29
- Q1
- 1.83
- Min
- 0.94
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.
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.
WFC
1.51
Banks - Diversified Industry
- Max
- 1.89
- Q3
- 1.47
- Median
- 1.23
- Q1
- 1.10
- Min
- 0.65
WFC’s P/B Ratio of 1.51 is in the upper tier for the Banks - Diversified 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.
Valuation at a Glance
| Symbol | ABNB | WFC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 33.40 | 13.71 |
| Forward PEG Ratio (TTM) | 1.66 | 0.72 |
| Price-to-Sales Ratio (P/S, TTM) | 7.61 | 2.20 |
| Price-to-Book Ratio (P/B, TTM) | 10.68 | 1.51 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 19.50 | 65.98 |
| EV-to-EBITDA (TTM) | 31.25 | 13.29 |
| EV-to-Sales (TTM) | 7.14 | 3.30 |