Airbnb (NASDAQ:ABNB) and Sabre (NASDAQ:SABR) Head to Head Comparison

Sabre (NASDAQ:SABR) and Airbnb (NASDAQ:ABNB) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sabre and Airbnb, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabre	2	2	1	0	1.80
Airbnb	2	13	27	2	2.66

Sabre currently has a consensus target price of $1.75, indicating a potential upside of 8.02%. Airbnb has a consensus target price of $182.43, indicating a potential upside of 10.97%. Given Airbnb’s stronger consensus rating and higher possible upside, analysts plainly believe Airbnb is more favorable than Sabre.

Volatility and Risk

Sabre has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

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%

Earnings & Valuation

This table compares Sabre and Airbnb”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabre	$2.77 billion	0.24	$524.62 million	$1.65	0.98
Airbnb	$12.24 billion	8.04	$2.51 billion	$4.40	37.36

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.

Insider & Institutional Ownership

89.4% of Sabre shares are owned by institutional investors. Comparatively, 80.8% of Airbnb shares are owned by institutional investors. 2.8% of Sabre shares are owned by company insiders. Comparatively, 27.2% of Airbnb shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Airbnb beats Sabre on 13 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.