AMC Entertainment (NYSE:AMC) & Airbnb (NASDAQ:ABNB) Head to Head Review
by Renee Jackson · The Cerbat GemAirbnb (NASDAQ:ABNB – Get Free Report) and AMC Entertainment (NYSE:AMC – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Valuation and Earnings
This table compares Airbnb and AMC Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Airbnb | $11.10 billion | 7.57 | $2.65 billion | $4.21 | 32.45 |
| AMC Entertainment | $4.64 billion | 0.18 | -$352.60 million | ($1.41) | -1.15 |
Airbnb has higher revenue and earnings than AMC Entertainment. AMC Entertainment is trading at a lower price-to-earnings ratio than Airbnb, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Airbnb and AMC Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Airbnb | 5 | 19 | 12 | 3 | 2.33 |
| AMC Entertainment | 2 | 6 | 1 | 0 | 1.89 |
Airbnb presently has a consensus target price of $144.48, indicating a potential upside of 5.75%. AMC Entertainment has a consensus target price of $3.26, indicating a potential upside of 100.51%. Given AMC Entertainment’s higher possible upside, analysts clearly believe AMC Entertainment is more favorable than Airbnb.
Risk and Volatility
Airbnb has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.
Profitability
This table compares Airbnb and AMC Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Airbnb | 22.03% | 32.14% | 10.95% |
| AMC Entertainment | -13.16% | N/A | -5.27% |
Insider & Institutional Ownership
80.8% of Airbnb shares are owned by institutional investors. Comparatively, 28.8% of AMC Entertainment shares are owned by institutional investors. 27.8% of Airbnb shares are owned by insiders. Comparatively, 0.4% of AMC Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Airbnb beats AMC Entertainment on 14 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 AMC Entertainment
AMC Entertainment Holdings, Inc., through its subsidiaries, engages in the theatrical exhibition business. It owns, operates, or has interests in theatres in the United States and Europe. The company was founded in 1920 and is headquartered in Leawood, Kansas.