Head-To-Head Analysis: AppLovin (NASDAQ:APP) and Sabre (NASDAQ:SABR)

Sabre (NASDAQ:SABR) and AppLovin (NASDAQ:APP) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Sabre and AppLovin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabre	1	3	0	0	1.75
AppLovin	0	4	14	1	2.84

Sabre currently has a consensus price target of $3.25, indicating a potential downside of 2.69%. AppLovin has a consensus price target of $338.06, indicating a potential downside of 1.25%. Given AppLovin’s stronger consensus rating and higher probable upside, analysts plainly believe AppLovin is more favorable than Sabre.

Profitability

This table compares Sabre and AppLovin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sabre	-10.01%	N/A	-2.98%
AppLovin	26.85%	122.24%	21.60%

Institutional & Insider Ownership

89.4% of Sabre shares are held by institutional investors. Comparatively, 41.8% of AppLovin shares are held by institutional investors. 1.8% of Sabre shares are held by company insiders. Comparatively, 14.7% of AppLovin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Sabre has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, AppLovin has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sabre and AppLovin”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabre	$2.91 billion	0.44	-$527.61 million	($0.79)	-4.23
AppLovin	$4.29 billion	26.78	$356.71 million	$3.30	103.74

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

Summary

AppLovin beats Sabre on 14 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 AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California.