Head-To-Head Review: Sabre (SABR) and Tripadvisor Inc Common Stock (TRIP)

Sabre (NASDAQ: SABR) and Tripadvisor Inc Common Stock (NASDAQ:TRIP) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Volatility & Risk

Sabre has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Tripadvisor Inc Common Stock has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500.

Profitability

This table compares Sabre and Tripadvisor Inc Common Stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sabre 9.41% 47.59% 6.39%
Tripadvisor Inc Common Stock -1.40% 4.36% 2.63%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sabre and Tripadvisor Inc Common Stock, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sabre 1 2 7 0 2.60
Tripadvisor Inc Common Stock 2 18 2 0 2.00

Sabre presently has a consensus target price of $26.50, indicating a potential upside of 6.30%. Tripadvisor Inc Common Stock has a consensus target price of $46.38, indicating a potential downside of 14.67%. Given Sabre’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sabre is more favorable than Tripadvisor Inc Common Stock.

Earnings and Valuation

This table compares Sabre and Tripadvisor Inc Common Stock’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sabre $3.60 billion 1.91 $242.53 million $1.30 19.18
Tripadvisor Inc Common Stock $1.56 billion 4.80 -$19.00 million $0.48 113.23

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

Insider and Institutional Ownership

92.1% of Tripadvisor Inc Common Stock shares are owned by institutional investors. 0.7% of Sabre shares are owned by insiders. Comparatively, 3.1% of Tripadvisor Inc Common Stock shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Sabre pays an annual dividend of $0.56 per share and has a dividend yield of 2.2%. Tripadvisor Inc Common Stock does not pay a dividend. Sabre pays out 43.1% of its earnings in the form of a dividend. Sabre has increased its dividend for 3 consecutive years.

Summary

Sabre beats Tripadvisor Inc Common Stock on 11 of the 17 factors compared between the two stocks.

About Sabre

Sabre Corporation, through its subsidiary, Sabre Holdings Corporation, provides technology solutions to the travel and tourism industry worldwide. It operates through two segments, Travel Network, and Airline and Hospitality Solutions. The Travel Network segment operates as 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. The Airline and Hospitality Solutions segment provides a portfolio of software technology products and solutions through software-as-a-service and hosted delivery models to airlines, hoteliers, and other travel suppliers. Its products include SabreSonic Customer Sales & Service, a reservation system that provides capabilities around managing sales and customer service across an airline's diverse touch points; Sabre AirVision Marketing & Planning, a set of airline commercial planning solutions; and Sabre AirCentre Enterprise Operations, a set of solutions for planning and management of airline, airport, and customer operations. This segment also provides software and solutions to hoteliers through SynXis, a central reservation system; SynXis Property Manager Solution for property management; and marketing, professional, and revenue management services. Sabre Corporation was founded in 2006 and is headquartered in Southlake, Texas.

About Tripadvisor Inc Common Stock

TripAdvisor, Inc. operates as an online travel company. The company operates in two segments, Hotel and Non-Hotel. Its travel platform aggregates reviews and opinions of members about destinations, accommodations, activities and attractions, and restaurants, which enables users to research and plan their travel experiences, as well as book hotels, flights, cruises, vacation rentals, tours, activities and attractions, and restaurant reservations on its site or mobile app, or on the site or app of travel partner sites. The company operates TripAdvisor-branded Websites, including tripadvisor.com in the United States; and localized versions of the Website in 48 markets and 28 languages. It also manages and operates 20 other media brands that provide users the comprehensive travel-planning and trip-taking resources in the travel industry, such as airfarewatchdog.com, bookingbuddy.com, citymaps.com, cruisecritic.com, familyvacationcritic.com, flipkey.com, thefork.com, gateguru.com, holidaylettings.co.uk, holidaywatchdog.com, housetrip.com, jetsetter.com, niumba.com, onetime.com, oyster.com, seatguru.com, smartertravel.com, tingo.com, vacationhomerentals.com, and viator.com. The company's Websites feature 600 million reviews and opinions on 7.5 million places comprising 1.2 million hotels, inns, B&Bs, and specialty lodging; 750,000 vacation rentals; 4.6 million restaurants; and 915,000 activities and attractions worldwide. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.

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