Financial Analysis: Sabre (SABR) versus YuMe (YUME)
Sabre (NASDAQ: SABR) and YuMe (NYSE:YUME) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Institutional and Insider Ownership
47.7% of YuMe shares are held by institutional investors. 1.0% of Sabre shares are held by insiders. Comparatively, 29.3% of YuMe shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Sabre and YuMe’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Sabre pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 3.3%. Sabre pays out 81.2% 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 50.0% of its earnings in the form of a dividend. YuMe is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Sabre has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, YuMe has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Sabre and YuMe, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sabre currently has a consensus target price of $22.63, indicating a potential upside of 14.15%. Given Sabre’s stronger consensus rating and higher probable upside, research analysts plainly believe Sabre is more favorable than YuMe.
Valuation and Earnings
This table compares Sabre and YuMe’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sabre||$3.37 billion||1.61||$242.56 million||$0.69||28.72|
|YuMe||$160.41 million||0.79||-$7.72 million||$0.24||15.17|
Sabre has higher revenue and earnings than YuMe. YuMe is trading at a lower price-to-earnings ratio than Sabre, indicating that it is currently the more affordable of the two stocks.
Sabre beats YuMe on 9 of the 16 factors compared between the two stocks.
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.
YuMe Company Profile
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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