Comparing Airbnb (NASDAQ:ABNB) & Marcus (NYSE:MCS)

Airbnb (NASDAQ:ABNB) and Marcus (NYSE:MCS) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a summary of recent recommendations for Airbnb and Marcus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	5	19	13	2	2.31
Marcus	0	0	3	1	3.25

Airbnb currently has a consensus target price of $142.66, suggesting a potential upside of 15.93%. Marcus has a consensus target price of $24.50, suggesting a potential upside of 52.46%. Given Marcus’ stronger consensus rating and higher probable upside, analysts plainly believe Marcus is more favorable than Airbnb.

Insider and Institutional Ownership

80.8% of Airbnb shares are owned by institutional investors. Comparatively, 81.6% of Marcus shares are owned by institutional investors. 27.9% of Airbnb shares are owned by insiders. Comparatively, 5.0% of Marcus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Airbnb and Marcus”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$11.10 billion	6.89	$2.65 billion	$4.13	29.79
Marcus	$775.79 million	0.65	-$7.79 million	$0.45	35.71

Airbnb has higher revenue and earnings than Marcus. Airbnb is trading at a lower price-to-earnings ratio than Marcus, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Airbnb has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Marcus has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares Airbnb and Marcus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbnb	22.67%	32.19%	11.03%
Marcus	1.91%	4.28%	1.88%

Summary

Airbnb beats Marcus on 10 of the 15 factors compared between the two stocks.

About Airbnb

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.

About Marcus

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.