StockOpine's avatar
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Which accommodation stock do you go for?
15%Booking Holdings Inc
84%Airbnb Inc
13 VotesPoll ended on: 05/13/22
Gaurav Kotak @ Fincredible's avatar
Both are good given the rebound in leisure, esp given $BKNG is relatively cheap at <20 P/E. But IMO $ABNB is a special company
StockOpine's avatar
@gkotak totally agree, both of them seem appealing after the recent pullback in stock prices and the increasing demand for travelling.
Eric Messenger's avatar
@gkotak is that forward? I’m seeing 164 for TTM and a little over 20 for FWD. Why such a dramatic difference? I’m not intimately familiar with either company.
Alex's avatar
Marriott should be thrown in here as well, in my opinion. Their recent M&A activities along with future plans for expansion have me excited.
StockOpine's avatar
@alex18 what are the future expansion plans of Marriott? Interested to learn more on that.
Eric Messenger's avatar
@alex18 I just pulled the peer comparison on Seeking Alpha and like Marriott also. But I’m a value guy. These a little pricey for my blood.
Alex's avatar
@stockopine they are aiming to grow # of total rooms by 3-4% by the end of this year, with a focus on international properties
Eric Messenger's avatar
I haven’t personally used either but it seems $ABNB is a one of a kind business. My kids love it and it’s what I plan to use when I travel next year. Can’t wait to try it personally.
StockOpine's avatar
@wall_street_deebo used both and must admit that both products are great for a traveller. Looking forward to use the new redesigned $ABNB which makes searching for an accommodation more exciting.

Really interested to see what do the hosts say about the service they receive from each platform.
Eric Messenger's avatar
@stockopine so I’m not very familiar with AirBnB since I never travel. But someone shared the video from the CEO talking about their new changes where you can search by destination, theme, or other interesting categories. Some may think it’s silly or not a growth driver but after seeing that video, there is ZERO chance I will ever travel again without checking what $ABNB has available in the area. Can’t wait, he’ll I’m excited about window shopping for destinations on their site🤣
StockOpine's avatar
@wall_street_deebo saw the same video yesterday. It makes you want to use their product asap. 🙌🏻
Joshua Simka's avatar
Going with $ABNB which has growth potential far beyond $BKNG as far as I can tell
StockOpine's avatar
@tomato thank you. What is the basis of this conclusion? Analysts expectations or something else?
Joshua Simka's avatar
@stockopine looking at the opportunities and optionality for Airbnb to innovate. They also benefit from the trend in long-term stays (defined by Airbnb as stays of 28 days or longer) are the fastest-growing category by trip length.
Joey Hirendernath's avatar
I struggle to understand the disparity between the two. Feels like AirBnB is jazzier, nicer aesthetic, but unsure if that warrants the valuation. Do you think narrative supports the valuation currently?
StockOpine's avatar
@joeyhirendernath We are currently evaluating both companies and we run a high level valuation (work in progress though). From a first view it seems that the recent pullback of $ABNB might provide an opportunity in terms of valuation and expected IRR, provided that revenues grow in line with analyst expectations in the next 5 years. If we assume that $ABNB will be able meet the historic EBITDA margins of $BKNG (average of 38% from 2015 to 2019) then we might have a case there.

On the other hand, $BKNG looks like a safer bet if it can return to its past profitability levels (EBITDA margins) and maintain annual revenue growth in the range of 15-20% (analyst expecting 20% CAGR up to 2026).

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