Contrasting YuMe (YUME) & Sabre (SABR)

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

Profitability

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

Net Margins Return on Equity Return on Assets
YuMe 5.25% 10.01% 6.37%
Sabre 5.22% 53.97% 6.12%

Institutional and Insider Ownership

47.7% of YuMe shares are owned by institutional investors. 29.3% of YuMe shares are owned by company insiders. Comparatively, 1.8% of Sabre shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 3.3%. Sabre pays an annual dividend of $0.56 per share and has a dividend yield of 2.9%. YuMe pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sabre pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares YuMe and Sabre’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YuMe $160.41 million 0.79 -$7.72 million $0.10 36.10
Sabre $3.37 billion 1.60 $242.56 million $0.67 29.28

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

Risk and Volatility

YuMe has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Sabre has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YuMe 0 1 0 0 2.00
Sabre 1 2 5 0 2.50

Sabre has a consensus target price of $22.63, suggesting a potential upside of 15.32%. Given Sabre’s stronger consensus rating and higher possible upside, analysts plainly believe Sabre is more favorable than YuMe.

Summary

Sabre beats YuMe on 10 of the 16 factors compared between the two stocks.

About YuMe

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.

About Sabre

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.

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