Head to Head Analysis: Digimarc (DMRC) & Sabre (SABR)

Digimarc (NASDAQ: DMRC) and Sabre (NASDAQ:SABR) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Institutional & Insider Ownership

56.0% of Digimarc shares are held by institutional investors. 7.5% of Digimarc shares are held by insiders. Comparatively, 1.0% of Sabre shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Digimarc and Sabre, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digimarc 0 1 3 0 2.75
Sabre 1 2 5 0 2.50

Digimarc presently has a consensus price target of $45.33, suggesting a potential upside of 20.89%. Sabre has a consensus price target of $22.63, suggesting a potential upside of 13.64%. Given Digimarc’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Digimarc is more favorable than Sabre.

Dividends

Sabre pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. Digimarc does not pay a dividend. Sabre 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.

Risk and Volatility

Digimarc has a beta of -1.2, indicating that its stock price is 220% less volatile than the S&P 500. Comparatively, Sabre has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares Digimarc and Sabre’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digimarc $21.79 million 19.50 -$21.67 million ($2.25) -16.67
Sabre $3.37 billion 1.62 $242.56 million $0.67 29.72

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

Profitability

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

Net Margins Return on Equity Return on Assets
Digimarc -90.69% -30.98% -29.02%
Sabre 5.22% 53.97% 6.12%

Summary

Sabre beats Digimarc on 9 of the 15 factors compared between the two stocks.

Digimarc Company Profile

Digimarc Corporation (Digimarc) enables governments and enterprises to give digital identities to media and objects that computers can sense and recognize. The Company’s Digimarc Discover, Digimarc Barcode and Intuitive Computing Platform are designed to optimize the identification of consumer brand impressions, facilitating mobile-centric shopping. The Company operates through media management solutions segment. The Company’s platform includes means to embed Digimarc Barcodes, invisible and inaudible barcode-like information that is recognizable by smartphones, industrial scanners, and other computer interfaces into various forms of media content, including consumer product packaging. Its Digimarc Barcodes has a range of applications, including facilitating scanning of products at retail checkout, as well as engagement with smartphone-equipped consumers. The Digimarc Barcode allows automatic identification of media without visible computer codes, such as traditional barcodes.

Sabre 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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