Sabre Corporation (NASDAQ: SABR) and Great Elm Capital Group (NASDAQ:GEC) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Sabre Corporation and Great Elm Capital Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sabre Corporation 1 2 5 0 2.50
Great Elm Capital Group 0 0 0 0 N/A

Sabre Corporation presently has a consensus price target of $22.63, suggesting a potential upside of 16.86%. Given Sabre Corporation’s higher probable upside, analysts clearly believe Sabre Corporation is more favorable than Great Elm Capital Group.

Institutional and Insider Ownership

36.8% of Great Elm Capital Group shares are held by institutional investors. 1.8% of Sabre Corporation shares are held by company insiders. Comparatively, 6.6% of Great Elm Capital Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Sabre Corporation and Great Elm Capital Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sabre Corporation $3.37 billion 1.58 $242.56 million $0.69 28.06
Great Elm Capital Group $4.92 million 19.64 -$15.20 million $3.21 1.18

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

Profitability

This table compares Sabre Corporation and Great Elm Capital Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sabre Corporation 5.22% 53.97% 6.12%
Great Elm Capital Group -221.85% -22.38% -18.36%

Dividends

Sabre Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 2.9%. Great Elm Capital Group does not pay a dividend. Sabre Corporation 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.

Summary

Sabre Corporation beats Great Elm Capital Group on 8 of the 13 factors compared between the two stocks.

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.

About Great Elm Capital Group

Great Elm Capital Group, Inc., formerly Unwired Planet, Inc., is a holding company. The Company makes investments in businesses and assets in various industries. The Company’s investment for long-term value creation is in the asset management business. The Company continues to explore other opportunities in the investment management business, including other business development companies (BDCs) that trade at a discount to their net asset value. The Company intends to build a diversified investment company consisting of the following three business lines: investment management, financial products and merchant banking. It is embarking on a program of creating bespoke financial products and creating a pipeline of acquisition opportunities. The Company’s subsidiary is Great Elm Capital Corporation (GECC).

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