Sabre (NASDAQ:SABR) & KnowBe4 (NASDAQ:KNBE) Head-To-Head Review

Sabre (NASDAQ:SABRGet Rating) and KnowBe4 (NASDAQ:KNBEGet Rating) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Sabre and KnowBe4’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sabre -31.88% N/A -12.56%
KnowBe4 -4.74% -0.92% -0.36%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sabre and KnowBe4, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sabre 0 2 0 0 2.00
KnowBe4 0 3 10 0 2.77

Sabre currently has a consensus price target of $12.50, suggesting a potential upside of 77.30%. KnowBe4 has a consensus price target of $28.38, suggesting a potential upside of 71.09%. Given Sabre’s higher probable upside, analysts plainly believe Sabre is more favorable than KnowBe4.

Earnings and Valuation

This table compares Sabre and KnowBe4’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sabre $1.69 billion 1.36 -$928.47 million ($2.02) -3.49
KnowBe4 $246.30 million 11.77 -$11.85 million ($0.11) -150.82

KnowBe4 has lower revenue, but higher earnings than Sabre. KnowBe4 is trading at a lower price-to-earnings ratio than Sabre, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

73.4% of KnowBe4 shares are held by institutional investors. 0.9% of Sabre shares are held by company insiders. Comparatively, 5.0% of KnowBe4 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

KnowBe4 beats Sabre on 9 of the 13 factors compared between the two stocks.

About Sabre (Get Rating)

Sabre Corporation, through its subsidiary, Sabre Holdings Corporation, provides software and technology solutions for the travel industry worldwide. It operates in two segments, Travel Solutions and Hospitality Solutions. The Travel Solutions segment operates as 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 also 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. The 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 KnowBe4 (Get Rating)

KnowBe4, Inc. engages in the development, marketing, and sale of its Software-as-a-Service-based security awareness platform. The company provides a platform incorporating security awareness training and simulated phishing with analytics and reporting that helps organizations manage the ongoing problem of social engineering. Its products include Kevin Mitnick Security Awareness Training, a security awareness training product; Compliance Plus, a compliance training product, which enables organizations to offer their employees with relevant, timely, and engaging compliance content across a range of topics from data privacy to diversity, equity, and inclusion; PhishER, its security orchestration, automation, and response product, which enables security professionals to prioritize and automate security workstreams in response to attacks targeted at the human layer; and KnowBe4 Compliance Manager, its governance, risk, and compliance product that enables organizations to analyze security risk and automate the management of compliance and audit functions. The company also offers Security Coach, a solution to address human behavior risks through human detection and response; and PasswordIQ that would be used to mitigate risk related to password hygiene issues, such as weak or breached passwords. It serves its customers directly through inside sales teams for enterprise and small and medium businesses, as well as indirectly through channel partners and managed service providers. The company was formerly known as SEQRIT, LLC and changed its name to KnowBe4, Inc. in January 2016. KnowBe4, Inc. was founded in 2010 and is headquartered in Clearwater, Florida.

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