What is a net margin and why is it relevant for comparing companies?

A net margin, expressed as a percentage, reveals how much profit a company makes from its total revenue after all expenses, including taxes, have been deducted. It's a key indicator of profitability and efficiency. When comparing companies like Airbnb and Expedia, a higher net margin typically suggests superior management of costs and stronger overall financial health, as seen with Airbnb's 22.67% compared to Expedia's 7.94%.

What does a company's price-to-earnings (P/E) ratio indicate?

The price-to-earnings (P/E) ratio is a valuation metric that compares a company's current share price to its earnings per share. It helps investors determine if a stock is overvalued or undervalued. A higher P/E ratio, such as Airbnb's 30.99 compared to Expedia's 26.82, often suggests that investors expect higher future growth, or it could indicate that the stock is relatively expensive.

What is 'beta' and how does it relate to stock volatility?

Beta is a measure of a stock's volatility relative to the overall market, typically the S&P 500. A beta greater than 1, like Expedia's 1.56, indicates the stock is more volatile than the market. A beta less than 1, such as Airbnb's 1.1, suggests lower volatility. Investors use beta to assess the systemic risk of an investment; a higher beta means the share price is expected to fluctuate more with market movements.

How does return on equity (ROE) differ between Airbnb and Expedia?

Return on equity (ROE) measures how much profit a company generates for each pound of shareholders' equity. It indicates how efficiently a company is using shareholders' funds to generate profits. Expedia delivers a higher ROE of 56.25% compared to Airbnb's 32.19%. This suggests that Expedia is currently more effective at converting equity investments into net income for its shareholders.

What is the significance of the price-to-sales (P/S) ratio in stock valuation?

The price-to-sales (P/S) ratio compares a company's market capitalisation to its total revenue over the past year. It's particularly useful for valuing growth companies that may not yet be profitable or for comparing companies in the same industry. Expedia trades at a lower P/S ratio of 1.98 versus Airbnb's 6.87, which might suggest Expedia's stock is perceived as more affordable relative to its sales.

How do analyst ratings influence perceptions of stocks like Airbnb and Expedia?

Analyst ratings reflect expert opinions on a company's future stock performance, often based on financial models and industry outlooks. While a stock's overall score might be similar, the distribution of buy, hold, or sell ratings can signal different levels of confidence. For instance, Expedia receives more sell ratings than Airbnb, despite similar overall scores, which could influence investor sentiment regarding its future prospects.

How can historical performance, like a 12-month return, inform investment analysis?

Historical performance, such as the return over the past 12 months, indicates how much a stock's price has changed over a specific period. While past performance does not guarantee future results, it provides context for a company's recent market sentiment and growth trajectory. For example, Expedia has outperformed Airbnb with a 63% return versus Airbnb's 5% growth over the past year.

What are some competitive pressures faced by companies in the travel industry?

Companies in the travel industry, such as Airbnb, face intense competition from various players, including Booking Holdings and Expedia. This competition spans across key areas like hotel inventory, corporate travel solutions, and market share for accommodation bookings. Such a competitive landscape can put pressure on pricing, marketing spend, and the need for continuous innovation to attract and retain customers, impacting profitability and growth potential.

How do gross revenue figures reflect the operational scale of companies like Airbnb and Expedia?

Gross revenue represents the total amount of money generated from a company's primary operations before any expenses are deducted. It serves as a direct indicator of a company's market reach and operational scale. For instance, Expedia's gross revenue of $13.69 billion exceeds Airbnb's $11.58 billion, suggesting Expedia has a larger overall sales volume or broader operational footprint in the travel market.

What factors contribute to market optimism or pessimism regarding travel sector stocks?

Market sentiment for travel sector stocks is often driven by global economic conditions, travel trends, and company-specific performance. Positive news, such as analyst upgrades citing policy success and potential growth from major events like the 2026 World Cup for Airbnb, can fuel optimism. Conversely, increased competition or weaker profitability metrics, like Expedia's lower net margin, can lead to more cautious sentiment or analyst sell ratings.

What should a beginner focus on when comparing two stocks like Airbnb and Expedia?

Beginners should focus on understanding key financial metrics such as net margin, P/E ratio, and ROE to gauge profitability and valuation. They should also consider market aspects like competitive landscape and growth potential. Comparing these metrics for Airbnb and Expedia helps identify their respective strengths and weaknesses, fostering a foundational understanding of how to assess different investment profiles within the same industry.

What is the purpose of the information provided on this comparison page?

This page offers a neutral, factual overview of Airbnb and and Expedia, detailing their business models, financial performance, and market positions. Its purpose is purely educational, aiming to help readers understand various financial concepts and how they apply to real-world company comparisons. This content is intended to provide insights for informational purposes only and should not be considered as financial advice or a recommendation to buy or sell any securities.

Airbnb vs Expedia

This page provides a neutral comparison of Airbnb and Expedia, two prominent players in the travel industry. We delve into their respective business models, analyse key aspects of their financial performance, and explore their positions within the broader market context. This factual overview aims to offer insights into their operational strategies and market dynamics, presented in an accessible manner for informational purposes. Educational content, not financial advice.

This page provides a neutral comparison of Airbnb and Expedia, two prominent players in the travel industry. We delve into their respective business models, analyse key aspects of their financial perf...

Comparison Snapshot

Key Financial Metrics

ABNB

Metric

EXPE

$80.62B

Market Cap

$28.39B

7.60%

Potential Profit

18.06%

Hold

Analyst Rating

Hold

Why It's Moving

Airbnb's Q4 Earnings Miss Sparks 4% Rally on Robust Bookings and Bright 2026 Outlook

Earnings fell short at 56 cents per share versus expectations, yet revenues climbed 12% year-over-year to $2.78 billion, beating estimates and signaling pricing power with ADR up 6%.
Nights booked surged 20% year-over-year, with app bookings hitting 64% of total and first-time bookers accelerating to 8%, highlighting expanding user engagement across demographics.
Q1 2026 guidance calls for 14-16% revenue growth and low-teens GBV expansion, driven by high single-digit nights growth and moderate ADR gains, boosting investor confidence in core trends.

Sentiment:

🐃Bullish

Expedia Stock Surges on Options Frenzy and Dividend Payout Amid Travel Sector Momentum

Unusually high call options volume hit 46% above average on March 5, driving shares up 12.4% to $249 in heavy trading, as investors bet on recovery.
Quarterly dividend of $0.48 per share (ex-date March 5) underscores financial strength, with a low 16% payout ratio supporting sustained growth initiatives.
B2B gross bookings jumped 24% to $8.7 billion in Q4, marking 18 straight quarters of double-digit gains, bolstering 2026 outlook above consensus.

Sentiment:

🐃Bullish

Airbnb's Q4 Earnings Miss Sparks 4% Rally on Robust Bookings and Bright 2026 Outlook

Earnings fell short at 56 cents per share versus expectations, yet revenues climbed 12% year-over-year to $2.78 billion, beating estimates and signaling pricing power with ADR up 6%.
Nights booked surged 20% year-over-year, with app bookings hitting 64% of total and first-time bookers accelerating to 8%, highlighting expanding user engagement across demographics.
Q1 2026 guidance calls for 14-16% revenue growth and low-teens GBV expansion, driven by high single-digit nights growth and moderate ADR gains, boosting investor confidence in core trends.

Sentiment:

🐃Bullish

Expedia Stock Surges on Options Frenzy and Dividend Payout Amid Travel Sector Momentum

Unusually high call options volume hit 46% above average on March 5, driving shares up 12.4% to $249 in heavy trading, as investors bet on recovery.
Quarterly dividend of $0.48 per share (ex-date March 5) underscores financial strength, with a low 16% payout ratio supporting sustained growth initiatives.
B2B gross bookings jumped 24% to $8.7 billion in Q4, marking 18 straight quarters of double-digit gains, bolstering 2026 outlook above consensus.

Sentiment:

🐃Bullish

Investment Analysis

Airbnb

ABNB

Pros

Airbnb achieves higher net margin of 22.67% versus Expedia's 7.94%, reflecting superior profitability.
Airbnb benefits from analyst upgrades citing RNPL policy success and 2026 World Cup growth potential.
Airbnb's lower beta of 1.1 indicates less share price volatility than Expedia's 1.56 relative to the S&P 500.

Considerations

Airbnb generates lower gross revenue of $11.58 billion compared to Expedia's $13.69 billion.
Airbnb trades at elevated price-to-earnings ratio of 30.99, higher than Expedia's 26.82.
Airbnb faces intense competition from Booking Holdings and Expedia in hotel inventory and corporate travel.

Expedia

EXPE

Pros

Expedia delivers higher return on equity of 56.25% compared to Airbnb's 32.19%.
Expedia trades at lower price-to-sales ratio of 1.98 versus Airbnb's 6.87, appearing more affordable.
Expedia has outperformed Airbnb with 63% return over past 12 months versus Airbnb's 5% growth.

Considerations

Expedia exhibits higher share price volatility with beta of 1.56 compared to Airbnb's 1.1.
Expedia's net margin of 7.94% trails Airbnb's 22.67%, indicating weaker profitability.
Expedia receives more sell ratings from analysts than Airbnb despite similar overall scores.

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About Airbnb and Expedia

Airbnb (ABNB)

Airbnb (ABNB) operates an online marketplace for short‑term lodging and experiences, connecting travellers with hosts worldwide. Investors should note its asset‑light model earns fees from bookings rather than owning properties, giving potential for strong margins as scale improves. Key strengths include network effects, a globally recognised brand, and diversified revenue streams (accommodation and Experiences). Risks include regulatory and zoning challenges in major cities, competition from traditional hotels and other platforms, sensitivity to travel cycles and economic downturns, and possible variability in host supply. Financial performance has shown recovery and growth after pandemic disruptions, but future returns depend on travel demand, pricing power and cost control. This summary is educational only and not personalised advice; values can rise and fall and past performance is not a guide to the future. Consider suitability for your goals and risk tolerance before investing.

Expedia (EXPE)

Expedia Inc (ticker: EXPE) is a major global online travel platform that connects travellers with flights, hotels, holiday rentals and packaged experiences across brands such as Expedia, Hotels.com and Vrbo. The company earns revenue through a mix of agency and merchant bookings, advertising and corporate travel services, and benefits when travel demand is strong. With a market capitalisation of about $27.98B, Expedia operates in a competitive, cyclical sector sensitive to economic conditions, fuel prices and global events. Investors should note the company’s exposure to shifting travel patterns, competition from Booking Holdings and Airbnb, and the importance of technology investments to keep search, pricing and listings competitive. Financial results can swing with seasonality and macro trends; management execution on margins and marketing efficiency is important. This summary is for general educational purposes only and is not personalised investment advice; values can rise and fall and past performance is not a reliable indicator of future returns.

Airbnb (ABNB) Next Earnings Date

Airbnb's next earnings date is scheduled for April 30, 2026, covering the first quarter of 2026 (Q1 2026). This follows the company's most recent report on February 12, 2026, for Q4 2025. Investors should monitor official channels for any updates to this schedule.

Expedia (EXPE) Next Earnings Date

Expedia Group's most recent earnings for Q4 2025 were reported on February 12, 2026. The next earnings release, covering Q1 2026, is estimated between May 1 and May 8, 2026, aligning with the company's historical late-April to early-May pattern. Investors should monitor for an official announcement, typically issued a few weeks prior.

Airbnb (ABNB) Next Earnings Date

Airbnb's next earnings date is scheduled for April 30, 2026, covering the first quarter of 2026 (Q1 2026). This follows the company's most recent report on February 12, 2026, for Q4 2025. Investors should monitor official channels for any updates to this schedule.

Expedia (EXPE) Next Earnings Date

Expedia Group's most recent earnings for Q4 2025 were reported on February 12, 2026. The next earnings release, covering Q1 2026, is estimated between May 1 and May 8, 2026, aligning with the company's historical late-April to early-May pattern. Investors should monitor for an official announcement, typically issued a few weeks prior.

Which Baskets Do They Appear In?

Travel

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Which Baskets Do They Appear In?

Travel

Investment opportunities already packed for you. This carefully curated collection of travel stocks represents companies poised to capitalize on the industry's post-pandemic revival. Selected by professional analysts for their recovery potential and growth opportunities.

Published: May 23, 2025

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Airbnb vs Expedia

Comparison Snapshot

Why It's Moving

Airbnb's Q4 Earnings Miss Sparks 4% Rally on Robust Bookings and Bright 2026 Outlook

Expedia Stock Surges on Options Frenzy and Dividend Payout Amid Travel Sector Momentum

Airbnb's Q4 Earnings Miss Sparks 4% Rally on Robust Bookings and Bright 2026 Outlook

Expedia Stock Surges on Options Frenzy and Dividend Payout Amid Travel Sector Momentum

Investment Analysis

Airbnb

Pros

Considerations

Expedia

Pros

Considerations

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About Airbnb and Expedia

Airbnb (ABNB) Next Earnings Date

Expedia (EXPE) Next Earnings Date

Airbnb (ABNB) Next Earnings Date

Expedia (EXPE) Next Earnings Date

Which Baskets Do They Appear In?

Travel

Which Baskets Do They Appear In?

Travel

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About Airbnb and Expedia