Sabre (NASDAQ:SABR) & Airbnb (NASDAQ:ABNB) Critical Contrast

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

Volatility & Risk

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

Institutional and Insider Ownership

80.8% of Airbnb shares are owned by institutional investors. Comparatively, 89.4% of Sabre shares are owned by institutional investors. 27.2% of Airbnb shares are owned by insiders. Comparatively, 2.8% of Sabre shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Airbnb and Sabre, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbnb	2	13	27	2	2.66
Sabre	1	3	1	0	2.00

Airbnb currently has a consensus price target of $181.93, indicating a potential upside of 5.76%. Sabre has a consensus price target of $1.75, indicating a potential upside of 15.13%. Given Sabre’s higher probable upside, analysts clearly believe Sabre is more favorable than Airbnb.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airbnb	20.45%	33.38%	10.67%
Sabre	25.14%	N/A	-2.12%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbnb	$12.24 billion	8.41	$2.51 billion	$4.40	39.09
Sabre	$2.77 billion	0.22	$524.62 million	$1.65	0.92

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.

Summary

Airbnb beats Sabre on 12 of the 15 factors compared between the two stocks.

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.

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.