Sabre Corporation (NASDAQ: SABR) and YuMe (NYSE:YUME) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

39.6% of YuMe shares are held by institutional investors. 1.8% of Sabre Corporation shares are held by company insiders. Comparatively, 29.3% of YuMe shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sabre Corporation and YuMe, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sabre Corporation 1 2 5 0 2.50
YuMe 1 1 0 0 1.50

Sabre Corporation presently has a consensus price target of $22.63, suggesting a potential upside of 20.73%. YuMe has a consensus price target of $3.00, suggesting a potential downside of 22.28%. Given Sabre Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Sabre Corporation is more favorable than YuMe.

Earnings & Valuation

This table compares Sabre Corporation and YuMe’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sabre Corporation $3.37 billion 1.53 $242.56 million $0.67 27.97
YuMe $160.41 million 0.83 -$7.72 million $0.10 38.60

Sabre Corporation has higher revenue and earnings than YuMe. Sabre Corporation is trading at a lower price-to-earnings ratio than YuMe, indicating that it is currently the more affordable of the two stocks.

Dividends

Sabre Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 3.1%. Sabre Corporation pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. YuMe pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Sabre Corporation has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, YuMe has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Profitability

This table compares Sabre Corporation and YuMe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sabre Corporation 5.22% 53.97% 6.12%
YuMe 2.46% 4.36% 2.88%

Summary

Sabre Corporation beats YuMe on 12 of the 16 factors compared between the two stocks.

About Sabre Corporation

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.

About YuMe

YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.

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