Key Points
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Airbnb maintains a light-asset business model with over 9 million active listings across more than 220 countries and regions.
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MGM Resorts International anchors its value in premier physical destinations and a significant footprint in the recovering Macau market.
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Which travel-focused stock offers the best combination of growth and value for your 2026 portfolio?
- 10 stocks we like better than Airbnb ›
The travel industry is evolving as consumers choose between digital-first platforms and traditional luxury destinations. Choosing between Airbnb (NASDAQ:ABNB) and MGM Resorts International (NYSE:MGM) requires weighing tech-driven growth against established physical assets.
Airbnb has redefined lodging by allowing individuals to rent out their homes, creating a massive global inventory without the costs of building hotels. MGM Resorts International anchors its business in massive physical casinos and entertainment hubs that offer experiences beyond just a place to sleep. Both companies are vying for discretionary spending as travel patterns shift in 2026.
The case for Airbnb
Airbnb operates a global marketplace connecting over 5 million hosts with guests in over 220 countries and regions in the travel and tourism space. The company relies on a network of hosts to sustain its marketplace for short-term stays and experiences. Key partnerships with payment processors and insurance providers support its AirCover protection for users.
In FY 2025, revenue reached nearly $12.2 billion, up approximately 10.3% year over year. The company reported net income of close to $2.5 billion for the same period. This followed a slightly higher net income of about $2.6 billion in the prior fiscal year.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.3x, measuring total debt relative to shareholder equity, while the current ratio is approximately 1.4x. Free cash flow for the year was nearly $4.6 billion. Note that stock-based compensation accounted for roughly 34.3% of operating cash flow, thereby inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.
The case for MGM Resorts International
MGM Resorts International operates 16 domestic casino properties and maintains a majority interest in MGM China. It has a multiyear partnership with Major League Baseball and operates the BetMGM sports betting venture. Following the April 2026 divestiture of MGM Northfield Park, the company continues focusing on its core Las Vegas and Macau markets.
During FY 2025, revenue was nearly $17.5 billion, an increase of roughly 1.7% over the previous year. The company reported net income of approximately $206.2 million for the period. This net income figure was lower than the $746.6 million reported in the prior fiscal year.
According to the December 2025 balance sheet, the debt-to-equity ratio is approximately 23.1x, which measures total debt relative to shareholders’ equity. The current ratio is roughly 1.2x, indicating its ability to meet short-term obligations. Free cash flow reached close to $1.7 billion during the fiscal year.
Risk profile comparison
Airbnb faces legal challenges from cities such as Los Angeles and Chicago over rental regulations and pricing. These disputes illustrate the risks posed by regulatory fragmentation and potential operational restrictions in major markets. The platform must also comply with the EU Short-Term Rental Regulation starting in May 2026, while facing competition from Marriott International (NASDAQ:MAR).
MGM Resorts International manages substantial indebtedness and fixed financial commitments, including lease payments to VICI Properties (NYSE:VICI). These obligations limit operational flexibility and liquidity during economic downturns. Additionally, an acquisition proposal from People Incorporated has led to shareholder investigations and legal uncertainty.
Valuation comparison
MGM Resorts International appears significantly cheaper on a P/S ratio basis, though both companies trade at similar forward P/E multiples based on future earnings estimates.
MetricAirbnbMGM Resorts InternationalSector BenchmarkForward P/E28.7×27.9×93.7xP/S ratio7.1×0.7xn/a
Sector benchmark uses the SPDR XLY sector ETF.Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
The travel industry has been picking up in recent years, post-pandemic. Both Airbnb and MGM are benefiting from that recovery, but which is the better investment in 2026?
Airbnb has a lot going for it. For one thing, its asset-light business model enables it to generate revenue without the capital investment required by traditional hotels. And since it doesn’t own the rental properties, it also avoids many of the costs and risks associated with owning and maintaining real estate. Currently, it partners with over 5 million hosts and has 8 million active listings. But it has been dealing with regulatory issues from cities cracking down on short-term rentals. It trades at a premium, reflecting investors’ optimism regarding its future earnings potential.
MGM operates a variety of property types, including Las Vegas casinos and regional hotels. It also has a stake in BetMGM, an online gaming and tournament poker platform. Las Vegas tourism has been softening recently, and unlike Airbnb, MGM must continue supporting expensive physical properties even during periods of weaker demand.
Between these two companies, I would choose to buy stock in Airbnb. Its asset-light model reduces its risk in times of economic uncertainty and means it can scale up when times are good. That strategy gives it an edge in today’s economy compared to MGM and many other travel stocks, and I think it could pay off for investors despite its high valuation.
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Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb. The Motley Fool recommends Marriott International and Vici Properties. The Motley Fool has a disclosure policy.
