Is Booking Holdings Stock Worth More Than Its Competitors?
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Over the past year, Booking Holdings (BKNG) stock lost 17.5%, dividends included, compared with a 9.8% return for the S&P 500. This performance marked the worst return within a peer group of five that includes Meta Platforms, Airbnb, Expedia and Hyatt Hotels. The lag occurred even though Meta is the only company in the group that converts a larger share of sales into operating profit than Booking does. So what do Booking’s rivals offer that Booking does not?
Booking Is More Profitable Than Airbnb But Grows Slower
Most competitors offer faster sales growth. Airbnb operates in the same hotel and resort industry and provides the starkest contrast. During the four fiscal quarters ended September 30, 2026, Booking retained 32.8% of its revenue as operating profit, compared with 22.5% at Airbnb. Yet Booking reported revenue growth of 8.0% over those quarters, which is about half of Airbnb’s 16.7% pace. That figure is held down by a $900 million legal charge, linked to an FTC action, that cut third-quarter revenue.
Investors pay far less for that profit, pricing the stock at 16.8 times earnings compared with 34.9 for Airbnb. Meta Platforms generates nearly the exact same margin as Booking, but its revenue expanded 27.5%. Meta is the only other comparable company priced above Booking on an earnings basis. The comparison excludes Expedia and Hyatt Hotels, as both companies lost money in one of their last four quarters. For the remaining companies in the P/E comparison, the two stocks with a higher multiple than Booking also grew faster.
| BKNG | META | ABNB | EXPE | H | |
|---|---|---|---|---|---|
| Four Fiscal Quarters | ended 2026-09-30 (Q4 FY2025 to Q3 FY2026) | ended 2026-09-30 (Q4 FY2025 to Q3 FY2026) | ended 2026-09-30 (Q4 FY2025 to Q3 FY2026) | ended 2026-09-30 (Q4 FY2025 to Q3 FY2026) | ended 2026-09-30 (Q4 FY2025 to Q3 FY2026) |
| Market Value (USD billion) | 120 | 1557 | 112 | 31.1 | 17.3 |
| P/E | 16.8 | 20.7 | 34.9 | 14.7 (not in the P/E rank) | 93.2 (not in the P/E rank) |
| Revenue Growth | 8% | 27.5% | 16.7% | 12.9% | 2.8% |
| Operating Margin | 32.8% | 32.9% | 22.5% | 18.4% | 8.4% |
| Total Return, Incl. Dividends, 2025-11-05 to 2026-11-06 | -17.5% | -3.7% | 55.1% | 22.1% | 34% |
Booking Now Handles Payment On Most Travel It Sells
Booking currently processes the payment on about 75% of its gross bookings. That figure is up about 3 percentage points from a year earlier, and management said the payments platform brings in extra profit. Most of Booking.com’s room nights come from outside the major chains. During the November 3, 2026 call, management said independent hotels and alternative accommodation partners generate the vast majority of room nights at Booking.com. The ten largest hotel chains account for only a low double-digit share.
Expenses have also shifted in favor of Booking. Third-quarter customer service costs fell even as booking volumes rose, a dynamic management credited to AI tools.
Growth remains the weaker metric. Flight tickets climbed 19% in the third quarter, but management said more flights in the mix lowered the revenue Booking keeps from each dollar booked. Over the latest four quarters, Booking’s revenue growth declined from the 13.0% pace recorded during the four quarters a year earlier.
Management Expects Little Revenue Growth In Fiscal Q4 2026
Management expects adjusted revenue, its own measure, to grow 0% to 2% in the fourth quarter of 2026, slowing from 9% in the third. Executives project adjusted EBITDA, management’s own profit measure, to remain about flat as Booking spends more on flights, attractions, dining and AI. According to management, this guidance assumes the effects of the Middle East conflict on travel last through the end of the year.
As a counterweight, management characterized the bookings already on the books for the first half of 2027 as healthy, while warning that this early reading can still change. Booking maintains a long-term ambition for constant currency growth in adjusted revenue of at least 8%.
The price investors pay for Booking appears to assume the company will continue growing more slowly than most of its rivals, regardless of how much profit it captures from each sale. The fourth-quarter guidance aligns with that perspective, and the early 2027 bookings are the only sign against it so far. Booking is expected to report its fourth quarter in February 2027. Management has said it will provide its commentary on 2027 at that time, and revenue growth in that report is the measure to watch.
Now You Know Booking Holdings. Here Is A Better Way To Invest
Before you decide on BKNG, consider owning 30 quality companies instead of one. The Trefis High Quality (HQ) Portfolio has returned 105% since its September 2020 launch, ahead of a benchmark that combines the S&P 500, S&P MidCap and Russell 2000.
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