Analyzing Sabre (SABR) and Perion Network (NASDAQ:PERI)

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

Analyst Ratings

This is a summary of recent recommendations for Perion Network and Sabre, as provided by MarketBeat.

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

Sabre has a consensus price target of $22.63, indicating a potential upside of 10.37%. Given Sabre’s stronger consensus rating and higher probable upside, analysts clearly believe Sabre is more favorable than Perion Network.

Institutional and Insider Ownership

19.4% of Perion Network shares are owned by institutional investors. 1.8% of Sabre shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Perion Network and Sabre’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Perion Network $312.79 million 0.26 $200,000.00 ($0.46) -2.24
Sabre $3.37 billion 1.67 $242.56 million $0.69 29.71

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

Risk and Volatility

Perion Network has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, Sabre has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Dividends

Sabre pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Perion Network does not pay a dividend. Sabre pays out 81.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

Net Margins Return on Equity Return on Assets
Perion Network -12.50% 7.83% 4.54%
Sabre 5.22% 53.97% 6.12%

Summary

Sabre beats Perion Network on 13 of the 16 factors compared between the two stocks.

Perion Network Company Profile

Perion Network Ltd. is a global technology company. It is engaged in delivering advertising solutions to brands and publishers. It operates through High Impact Advertising solutions segment. It provides execution, ranging from high-impact advertisement formats to branded search, and a unified social and mobile programmatic platform. Its business solutions include Undertone, Codefuel, Growmobile, IncrediMail and Smilebox. Undertone offers engaging digital advertising, which is designed to capture consumer attention and drive engagement, delivering these advertisements across a portfolio of Websites and mobile applications. CodeFuel is an engagement and monetization suite delivering solutions for both content publishers and advertisers. Growmobile offers automated marketing solutions ranging from social advertising to user engagement. IncrediMail is a unified messaging application. Smilebox is a photo sharing and social expression product and offers various formats, themes and styles.

Sabre Company Profile

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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