Head-To-Head Contrast: Box (NYSE:BOX) & Sabre Corporation (SABR)

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

Risk and Volatility

Box has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Sabre Corporation has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Box -34.11% -232.81% -32.96%
Sabre Corporation 5.22% 53.97% 6.12%

Analyst Recommendations

This is a summary of recent ratings for Box and Sabre Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Box 0 2 12 0 2.86
Sabre Corporation 1 2 5 0 2.50

Box currently has a consensus target price of $23.73, suggesting a potential upside of 8.39%. Sabre Corporation has a consensus target price of $22.63, suggesting a potential upside of 19.33%. Given Sabre Corporation’s higher probable upside, analysts clearly believe Sabre Corporation is more favorable than Box.

Earnings and Valuation

This table compares Box and Sabre Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Box $398.61 million 7.35 -$151.78 million ($1.18) -18.55
Sabre Corporation $3.37 billion 1.54 $242.56 million $0.67 28.30

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

Institutional and Insider Ownership

59.2% of Box shares are held by institutional investors. 20.6% of Box shares are held by insiders. Comparatively, 1.0% of Sabre Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Sabre Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Box does not pay a dividend. Sabre Corporation 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.

Summary

Sabre Corporation beats Box on 8 of the 15 factors compared between the two stocks.

About Box

Box, Inc. provides an enterprise content management platform that enables organizations of all sizes to manage enterprise content while allowing access and sharing of this content from anywhere, on any device. With the Company’s Software-as-a-Service (SaaS) cloud-based platform, users can collaborate on content both internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security and compliance features to comply with internal policies and industry regulations. Its platform enables people to view, share and collaborate on content, across various file formats and media types. The software integrates with enterprise business applications, and is compatible with various application environments, operating systems and devices, ensuring that workers have access to their business content. It offers individuals a free basic version of the Box platform that allows them to experience its solution.

About Sabre Corporation

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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