Sabre (NASDAQ:SABR – Get Free Report) and Cheesecake Factory (NASDAQ:CAKE – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
89.4% of Sabre shares are held by institutional investors. Comparatively, 94.5% of Cheesecake Factory shares are held by institutional investors. 2.8% of Sabre shares are held by company insiders. Comparatively, 8.0% of Cheesecake Factory shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Sabre and Cheesecake Factory’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% |
| Cheesecake Factory | 4.61% | 43.97% | 6.18% |
Risk & Volatility
Sabre has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Cheesecake Factory has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
Valuation & Earnings
This table compares Sabre and Cheesecake Factory”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sabre | $2.77 billion | 0.23 | $524.62 million | $1.65 | 0.97 |
| Cheesecake Factory | $3.88 billion | 1.36 | $148.43 million | $3.69 | 28.65 |
Sabre has higher earnings, but lower revenue than Cheesecake Factory. Sabre is trading at a lower price-to-earnings ratio than Cheesecake Factory, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for Sabre and Cheesecake Factory, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sabre | 2 | 2 | 1 | 0 | 1.80 |
| Cheesecake Factory | 2 | 11 | 4 | 1 | 2.22 |
Sabre currently has a consensus target price of $1.75, suggesting a potential upside of 9.37%. Cheesecake Factory has a consensus target price of $95.47, suggesting a potential downside of 9.71%. Given Sabre’s higher possible upside, equities analysts plainly believe Sabre is more favorable than Cheesecake Factory.
Summary
Cheesecake Factory beats Sabre on 11 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 Cheesecake Factory
The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors. It operates restaurants under the brands comprising The Cheesecake Factory, North Italia, Flower Child, Fox Restaurant Concepts. The Cheesecake Factory Incorporated was founded in 1972 and is headquartered in Calabasas, California.
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