Sabre (NASDAQ:SABR – Get Free Report) and Airbnb (NASDAQ:ABNB – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Risk and Volatility
Sabre has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Institutional & Insider Ownership
89.4% of Sabre shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 2.8% of Sabre shares are held by company insiders. Comparatively, 27.2% of Airbnb shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Sabre and Airbnb, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sabre | 1 | 3 | 1 | 0 | 2.00 |
| Airbnb | 2 | 13 | 27 | 2 | 2.66 |
Sabre currently has a consensus price target of $1.75, suggesting a potential upside of 15.13%. Airbnb has a consensus price target of $181.93, suggesting a potential upside of 5.76%. Given Sabre’s higher probable upside, analysts clearly believe Sabre is more favorable than Airbnb.
Profitability
This table compares Sabre and Airbnb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sabre | 25.14% | N/A | -2.12% |
| Airbnb | 20.45% | 33.38% | 10.67% |
Valuation and Earnings
This table compares Sabre and Airbnb”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sabre | $2.77 billion | 0.22 | $524.62 million | $1.65 | 0.92 |
| Airbnb | $12.24 billion | 8.41 | $2.51 billion | $4.40 | 39.09 |
Airbnb has higher revenue and earnings than Sabre. Sabre is trading at a lower price-to-earnings ratio than Airbnb, indicating that it is currently the more affordable of the two stocks.
Summary
Airbnb beats Sabre on 12 of the 15 factors compared between the two stocks.
About Sabre
Sabre Corporation, together with its subsidiaries, operates as software and technology company for travel industry in the United States, Europe, Asia-Pacific, and internationally. It operates through two segments: Travel Solutions and Hospitality Solutions. The Travel Solutions segment operates a business-to-business travel marketplace that offers travel content, such as inventory, prices, and availability from a range of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines, and tour operators with a network of travel buyers comprising online and offline travel agencies, travel management companies, and corporate travel departments. This segment provides a portfolio of software technology products and solutions through software-as-a-service (SaaS) and hosted delivery models to airlines and other travel suppliers. Its products include reservation systems for carriers, commercial and operations products, agency solutions, and data-driven intelligence solutions. Its Hospitality Solutions segment provides software and solutions to hoteliers through SaaS and hosted delivery models. Sabre Corporation was incorporated in 2006 and is headquartered in Southlake, Texas.
About Airbnb
Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.
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