Sabre (SABR) & Rosetta Stone (RST) Financial Contrast
Sabre (NASDAQ: SABR) and Rosetta Stone (NYSE:RST) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
This table compares Sabre and Rosetta Stone’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Sabre pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Rosetta Stone 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.
This is a breakdown of recent ratings and recommmendations for Sabre and Rosetta Stone, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sabre currently has a consensus price target of $22.63, indicating a potential upside of 21.97%. Rosetta Stone has a consensus price target of $15.00, indicating a potential upside of 17.28%. Given Sabre’s higher probable upside, equities research analysts clearly believe Sabre is more favorable than Rosetta Stone.
Earnings and Valuation
This table compares Sabre and Rosetta Stone’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sabre||$3.37 billion||1.51||$242.56 million||$0.69||26.88|
|Rosetta Stone||$194.09 million||1.47||-$27.55 million||($0.42)||-30.45|
Sabre has higher revenue and earnings than Rosetta Stone. Rosetta Stone is trading at a lower price-to-earnings ratio than Sabre, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
72.1% of Rosetta Stone shares are held by institutional investors. 1.8% of Sabre shares are held by insiders. Comparatively, 13.0% of Rosetta Stone shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Sabre has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Rosetta Stone has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Sabre beats Rosetta Stone on 11 of the 16 factors compared between the two stocks.
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.
About Rosetta Stone
Rosetta Stone Inc. (Rosetta Stone) offers personalized language and reading programs. The Company’s solutions are used by schools, businesses, government organizations and individuals around the world. Its segments include Enterprise & Education, which derives revenues from sales to educational institutions, corporations and government agencies worldwide, and Consumer, which derives revenue from sales to individuals and retail partners. Its cloud-based programs allow users to learn online or on-the-go via tablet or smartphone, whether in a classroom, corporate setting, or personal learning environment. Its Fit Brains business offers personalized brain training programs. The Company offers courses in over 30 languages across formats, including Web-based software subscriptions, digital downloads, mobile applications, and perpetual compact disc packages. It also offers a portfolio of technology-based learning products for personal use to the global consumer.
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