Sabre Corporation (NASDAQ: SABR) is one of 64 publicly-traded companies in the “Application Software” industry, but how does it contrast to its competitors? We will compare Sabre Corporation to similar businesses based off the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

Volatility and Risk

Sabre Corporation has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Sabre Corporation’s competitors have a beta of 1.62, meaning that their average share price is 62% more volatile than the S&P 500.

Profitability

This table compares Sabre Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sabre Corporation 3.87% 46.16% 5.43%
Sabre Corporation Competitors -57.00% 18.84% -13.83%

Dividends

Sabre Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 3.2%. Sabre Corporation pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Application Software” companies pay a dividend yield of 1.9% and pay out -10,668.0% of their earnings in the form of a dividend.

Insider & Institutional Ownership

70.7% of shares of all “Application Software” companies are owned by institutional investors. 1.8% of Sabre Corporation shares are owned by company insiders. Comparatively, 16.0% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Sabre Corporation and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sabre Corporation $3.48 billion $719.33 million 36.85
Sabre Corporation Competitors $748.15 million $133.63 million -8.77

Sabre Corporation has higher revenue and earnings than its competitors. Sabre Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Sabre Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sabre Corporation 1 1 7 0 2.67
Sabre Corporation Competitors 225 1661 2831 110 2.59

Sabre Corporation presently has a consensus target price of $25.13, suggesting a potential upside of 42.03%. All “Application Software” companies have a potential upside of 0.31%. Given Sabre Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Sabre Corporation is more favorable than its competitors.

Summary

Sabre Corporation beats its competitors on 10 of the 15 factors compared.

Sabre Corporation Company Profile

Sabre Corporation is a technology solutions provider to the global travel and tourism industry. The Company provides software and services to a range of travel suppliers and travel buyers. The Company operates through two business segments: Travel Network, and Airline and Hospitality Solutions. Travel Network is its global business-to-business travel marketplace and consists primarily of its global distribution system (GDS) and a set of solutions that integrate with its GDS to serve travel suppliers and travel buyers. Its Airline and Hospitality Solutions business offers a portfolio of software technology products and solutions, through software-as-a-service (SaaS) and hosted delivery model, to airlines, hoteliers and other travel suppliers. The Company connects travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines and tour operators, with travel buyers in a travel marketplace.

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