Sabre (NASDAQ:SABR – Get Free Report) and NetEase (NASDAQ:NTES – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Institutional & Insider Ownership
89.4% of Sabre shares are owned by institutional investors. Comparatively, 11.1% of NetEase shares are owned by institutional investors. 2.3% of Sabre shares are owned by insiders. Comparatively, 54.7% of NetEase shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Sabre has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, NetEase has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sabre | 0 | 3 | 1 | 0 | 2.25 |
| NetEase | 0 | 1 | 7 | 0 | 2.88 |
Sabre currently has a consensus price target of $4.28, indicating a potential upside of 25.70%. NetEase has a consensus price target of $119.38, indicating a potential downside of 10.68%. Given Sabre’s higher possible upside, equities analysts plainly believe Sabre is more favorable than NetEase.
Profitability
This table compares Sabre and NetEase’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sabre | -5.69% | N/A | -2.48% |
| NetEase | 30.12% | 23.08% | 16.90% |
Earnings and Valuation
This table compares Sabre and NetEase”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sabre | $3.03 billion | 0.44 | -$278.76 million | ($0.44) | -7.73 |
| NetEase | $14.43 billion | 5.87 | $4.07 billion | $6.95 | 19.23 |
NetEase has higher revenue and earnings than Sabre. Sabre is trading at a lower price-to-earnings ratio than NetEase, indicating that it is currently the more affordable of the two stocks.
Summary
NetEase beats Sabre on 11 of the 14 factors compared between the two stocks.
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.
About NetEase
NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments. It develops and operates PC and mobile games, as well as offers games licensed from other game developers. The company's products and services include Youdao Dictionary, an online knowledge tool; Youdao Translation, a tool specifically designed to support translation needs of business and leisure travelers; U-Dictionary, an online dictionary and translation app; Youdao Kids' Dictionary, a smart and fun tool; smart devices, such as Youdao Dictionary Pen, Youdao Smart Learning Pad, Youdao Listening Pod, Youdao Smart Light, Youdao Pocket Translator, and Youdao Super Dictionary; online courses; interactive learning apps; and education digitalization solutions, such as Youdao Smart Learning Terminal, a device that automates paper-based homework processing; Youdao Smart Cloud, a cloud-based platform that allows third-party app developers, smart device brands, and manufacturers to the company's OCR capabilities; and Youdao Sports, a sports-centric educational system. Its products and services also include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform, which sells private label products; www.163.com portal and related mobile app, Wangyi Xinwen, which deliver information such as news, sports events, technology, fashion trends, and online entertainment; NetEase Mail, an email service; NetEase CC Live streaming, a live streaming platform with a focus on game broadcasting; and NetEase Pay, a payment platform. The company was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.
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