Critical Contrast: Airbnb (NASDAQ:ABNB) & First Watch Restaurant Group (NASDAQ:FWRG)
by Danessa Lincoln · The Markets DailyAirbnb (NASDAQ:ABNB – Get Free Report) and First Watch Restaurant Group (NASDAQ:FWRG – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.
Institutional & Insider Ownership
80.8% of Airbnb shares are owned by institutional investors. Comparatively, 96.1% of First Watch Restaurant Group shares are owned by institutional investors. 27.2% of Airbnb shares are owned by insiders. Comparatively, 6.1% of First Watch Restaurant Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Airbnb and First Watch Restaurant Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Airbnb | $12.24 billion | 8.37 | $2.51 billion | $4.40 | 38.88 |
| First Watch Restaurant Group | $1.22 billion | 0.56 | $19.43 million | $0.29 | 38.14 |
Airbnb has higher revenue and earnings than First Watch Restaurant Group. First Watch Restaurant Group is trading at a lower price-to-earnings ratio than Airbnb, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Airbnb and First Watch Restaurant Group, as provided 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 presently has a consensus price target of $181.93, indicating a potential upside of 6.36%. First Watch Restaurant Group has a consensus price target of $17.90, indicating a potential upside of 61.84%. Given First Watch Restaurant Group’s stronger consensus rating and higher probable upside, analysts clearly believe First Watch Restaurant Group is more favorable than Airbnb.
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% |
Risk and 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.
Summary
Airbnb beats First Watch Restaurant Group on 11 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.