AppLovin (NASDAQ:APP) & Sabre (NASDAQ:SABR) Critical Comparison

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

Analyst Ratings

This is a breakdown of current ratings and price targets for AppLovin and Sabre, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AppLovin	0	4	14	1	2.84
Sabre	1	3	0	0	1.75

AppLovin presently has a consensus target price of $337.71, indicating a potential upside of 6.04%. Sabre has a consensus target price of $3.25, indicating a potential downside of 1.81%. Given AppLovin’s stronger consensus rating and higher probable upside, analysts clearly believe AppLovin is more favorable than Sabre.

Earnings & Valuation

This table compares AppLovin and Sabre”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppLovin	$4.29 billion	24.92	$356.71 million	$3.30	96.51
Sabre	$3.00 billion	0.43	-$527.61 million	($0.79)	-4.19

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

Institutional and Insider Ownership

41.8% of AppLovin shares are owned by institutional investors. Comparatively, 89.4% of Sabre shares are owned by institutional investors. 14.7% of AppLovin shares are owned by insiders. Comparatively, 1.3% of Sabre shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AppLovin	26.85%	122.24%	21.60%
Sabre	-10.01%	N/A	-2.98%

Risk and Volatility

AppLovin has a beta of 2.29, suggesting that its stock price is 129% more volatile than the S&P 500. Comparatively, Sabre has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.

Summary

AppLovin beats Sabre on 14 of the 15 factors compared between the two stocks.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, 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.