Financial Survey: Airbnb (NASDAQ:ABNB) and First Watch Restaurant Group (NASDAQ:FWRG)

Airbnb (NASDAQ:ABNB) and First Watch Restaurant Group (NASDAQ:FWRG) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Airbnb and First Watch Restaurant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbnb	20.45%	33.38%	10.67%
First Watch Restaurant Group	1.35%	2.85%	1.01%

Valuation and Earnings

This table compares Airbnb and First Watch Restaurant Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$12.24 billion	8.58	$2.51 billion	$4.40	39.88
First Watch Restaurant Group	$1.22 billion	0.61	$19.43 million	$0.29	41.93

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Airbnb and First Watch Restaurant Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	2	13	27	2	2.66
First Watch Restaurant Group	1	1	8	2	2.92

Airbnb currently has a consensus price target of $181.93, indicating a potential upside of 3.68%. First Watch Restaurant Group has a consensus price target of $18.00, indicating a potential upside of 48.03%. Given First Watch Restaurant Group’s stronger consensus rating and higher possible upside, analysts clearly believe First Watch Restaurant Group is more favorable than Airbnb.

Risk & Volatility

Airbnb has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, First Watch Restaurant Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Insider and Institutional Ownership

80.8% of Airbnb shares are held by institutional investors. Comparatively, 96.1% of First Watch Restaurant Group shares are held by institutional investors. 27.2% of Airbnb shares are held by company insiders. Comparatively, 6.1% of First Watch Restaurant Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Airbnb beats First Watch Restaurant Group on 10 of the 14 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 First Watch Restaurant Group

First Watch Restaurant Group, Inc., through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is based in Bradenton, Florida.