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

Updated

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

Company Overview

ABNB’s market capitalization of 84.16 billion USD is substantially larger than YUM’s 39.21 billion USD, indicating a significant difference in their market valuations.

ABNB’s beta of 1.14 points to significantly higher volatility compared to YUM (beta: 0.74), suggesting ABNB has greater potential for both gains and losses relative to market movements.

SymbolABNBYUM
Company NameAirbnb, Inc.Yum! Brands, Inc.
CountryUSUS
SectorConsumer CyclicalConsumer Cyclical
IndustryTravel ServicesRestaurants
CEOMr. Brian CheskyMr. David W. Gibbs
Price134.359 USD141.07 USD
Market Cap84.16 billion USD39.21 billion USD
Beta1.140.74
ExchangeNASDAQNYSE
IPO DateDecember 10, 2020September 17, 1997
ADRNoNo

Historical Performance

This chart compares the performance of ABNB and YUM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Profitability

Return on Equity

ABNB

30.91%

Travel Services Industry

Max
73.02%
Q3
30.91%
Median
12.64%
Q1
-7.58%
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.

YUM

-18.53%

Restaurants Industry

Max
83.01%
Q3
29.50%
Median
4.72%
Q1
-17.91%
Min
-41.05%

YUM has a negative Return on Equity of -18.53%. 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. YUM: 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
18.96%
Q3
15.06%
Median
9.38%
Q1
5.26%
Min
2.67%

ABNB’s Return on Invested Capital of 18.96% is in the upper quartile for the Travel Services industry, signifying a highly effective use of its capital to generate profits when compared to its peers.

YUM

38.20%

Restaurants Industry

Max
28.03%
Q3
10.05%
Median
4.03%
Q1
-2.36%
Min
-18.09%

YUM’s Return on Invested Capital of 38.20% is exceptionally high, placing it well beyond the typical range for the Restaurants industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

ABNB vs. YUM: A comparison of their ROIC against their respective Travel Services and Restaurants industry benchmarks.

Net Profit Margin

ABNB

22.60%

Travel Services Industry

Max
32.02%
Q3
19.38%
Median
8.48%
Q1
2.86%
Min
-5.69%

ABNB’s Net Profit Margin of 22.60% is in the upper quartile for the Travel Services industry, signifying strong profitability and more effective cost management than most of its peers.

YUM

18.42%

Restaurants Industry

Max
26.45%
Q3
7.76%
Median
1.16%
Q1
-7.02%
Min
-28.40%

YUM’s Net Profit Margin of 18.42% is in the upper quartile for the Restaurants industry, signifying strong profitability and more effective cost management than most of its peers.

ABNB vs. YUM: 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
20.16%
Median
13.21%
Q1
6.15%
Min
3.23%

ABNB’s Operating Profit Margin of 22.17% is 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.

YUM

36.81%

Restaurants Industry

Max
26.66%
Q3
9.28%
Median
3.34%
Q1
-3.87%
Min
-22.88%

YUM’s Operating Profit Margin of 36.81% is exceptionally high, placing it well above the typical range for the Restaurants industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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

Profitability at a Glance

SymbolABNBYUM
Return on Equity (TTM)30.91%-18.53%
Return on Assets (TTM)10.13%21.40%
Return on Invested Capital (TTM)18.96%38.20%
Net Profit Margin (TTM)22.60%18.42%
Operating Profit Margin (TTM)22.17%36.81%
Gross Profit Margin (TTM)83.05%52.35%

Financial Strength

Current Ratio

ABNB

1.27

Travel Services Industry

Max
3.63
Q3
1.89
Median
1.22
Q1
0.70
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.

YUM

1.40

Restaurants Industry

Max
3.00
Q3
1.48
Median
0.79
Q1
0.41
Min
0.12

YUM’s Current Ratio of 1.40 aligns with the median group of the Restaurants industry, indicating that its short-term liquidity is in line with its sector peers.

ABNB vs. YUM: 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
1.95
Median
0.29
Q1
0.12
Min
0.00

ABNB’s Debt-to-Equity Ratio of 0.29 is typical for the Travel Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

YUM

-1.46

Restaurants Industry

Max
5.12
Q3
2.43
Median
1.34
Q1
0.61
Min
0.05

YUM has a Debt-to-Equity Ratio of -1.46, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

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

Interest Coverage Ratio

ABNB

--

Travel Services Industry

Max
8.17
Q3
5.76
Median
3.04
Q1
2.18
Min
0.53

Interest Coverage Ratio data for ABNB is currently unavailable.

YUM

5.79

Restaurants Industry

Max
17.60
Q3
7.17
Median
2.25
Q1
-2.46
Min
-15.89

YUM’s Interest Coverage Ratio of 5.79 is positioned near the center of the pack in the Restaurants industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolABNBYUM
Current Ratio (TTM)1.271.40
Quick Ratio (TTM)1.271.40
Debt-to-Equity Ratio (TTM)0.29-1.46
Debt-to-Asset Ratio (TTM)0.091.71
Net Debt-to-EBITDA Ratio (TTM)-2.073.65
Interest Coverage Ratio (TTM)--5.79

Growth

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

Revenue Growth (YoY)

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

EPS Growth (YoY)

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

Free Cash Flow Growth (YoY)

ABNB vs. YUM: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ABNB

0.00%

Travel Services Industry

Max
0.91%
Q3
0.53%
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 all earnings back into the business, though it may be less typical in mature, income-oriented sectors.

YUM

1.96%

Restaurants Industry

Max
3.60%
Q3
1.82%
Median
0.00%
Q1
0.00%
Min
0.00%

YUM’s Dividend Yield of 1.96% is in the upper quartile for the Restaurants industry, offering a more attractive income stream than most of its peers and signaling a strong commitment to shareholder returns.

ABNB vs. YUM: 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
4.56%
Q3
4.56%
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 typically means all profits are being reinvested for growth.

YUM

53.40%

Restaurants Industry

Max
77.70%
Q3
32.75%
Median
0.00%
Q1
0.00%
Min
0.00%

YUM’s payout ratio of 53.40% is in the upper quartile for the Restaurants industry. This reflects a generous dividend policy compared to its peers, favoring shareholder payouts over retaining capital.

ABNB vs. YUM: A comparison of their Payout Ratio against their respective Travel Services and Restaurants industry benchmarks.

Dividend at a Glance

SymbolABNBYUM
Dividend Yield (TTM)0.00%1.96%
Dividend Payout Ratio (TTM)0.00%53.40%

Valuation

Price-to-Earnings Ratio

ABNB

32.88

Travel Services Industry

Max
58.05
Q3
47.23
Median
22.20
Q1
18.01
Min
3.34

ABNB’s P/E Ratio of 32.88 is comparable to the norm for the Travel Services industry, suggesting its valuation is neither at a significant premium nor a discount to its peers.

YUM

27.72

Restaurants Industry

Max
78.51
Q3
44.44
Median
24.86
Q1
16.64
Min
1.86

YUM’s P/E Ratio of 27.72 is comparable to the norm for the Restaurants industry, suggesting its valuation is neither at a significant premium nor a discount to its peers.

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

Forward P/E to Growth Ratio

ABNB

1.63

Travel Services Industry

Max
2.27
Q3
1.68
Median
1.10
Q1
0.51
Min
0.00

ABNB’s Forward PEG Ratio of 1.63 is typical for the Travel Services industry, suggesting its valuation is reasonably aligned with its growth prospects, consistent with sector norms.

YUM

2.04

Restaurants Industry

Max
5.72
Q3
2.84
Median
1.76
Q1
0.46
Min
0.00

YUM’s Forward PEG Ratio of 2.04 is typical for the Restaurants industry, suggesting its valuation is reasonably aligned with its growth prospects, consistent with sector norms.

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

Price-to-Book Ratio

ABNB

10.51

Travel Services Industry

Max
10.83
Q3
9.37
Median
4.44
Q1
2.01
Min
0.24

The P/B Ratio isn’t typically a primary valuation metric for companies in the Travel Services industry.

YUM

-5.06

Restaurants Industry

Max
11.53
Q3
5.55
Median
2.66
Q1
1.16
Min
0.00

YUM has a negative P/B Ratio of -5.06, indicating negative shareholder equity where liabilities exceed assets. This is a critical red flag for financial instability.

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

Price-to-Sales Ratio

ABNB

7.49

Travel Services Industry

Max
11.66
Q3
7.40
Median
2.19
Q1
0.90
Min
0.38

ABNB’s P/S Ratio of 7.49 is in the upper quartile for the Travel Services industry. This suggests investors are paying a premium for each dollar of the company’s sales compared to its peers, indicating optimism about its growth prospects.

YUM

5.07

Restaurants Industry

Max
3.99
Q3
2.29
Median
1.05
Q1
0.43
Min
0.00

YUM’s P/S Ratio of 5.07 is exceptionally high, placing it well beyond the typical range for the Restaurants industry. This reflects a significant premium on its sales, likely driven by strong investor expectations for future growth and market share gains.

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

Valuation at a Glance

SymbolABNBYUM
Price-to-Earnings Ratio (P/E, TTM)32.8827.72
Forward PEG Ratio (TTM)1.632.04
Price-to-Sales Ratio (P/S, TTM)7.495.07
Price-to-Book Ratio (P/B, TTM)10.51-5.06
Price-to-Free Cash Flow Ratio (P/FCF, TTM)19.2027.02
EV-to-EBITDA (TTM)30.7316.98
EV-to-Sales (TTM)7.026.46