Contrasting Sabre (SABR) and Finjan (FNJN)

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

Valuation & Earnings

This table compares Sabre and Finjan’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sabre $3.37 billion 1.66 $242.56 million $0.67 30.49
Finjan $18.39 million 3.62 $350,000.00 $0.41 5.87

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

Dividends

Sabre pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Finjan does not pay a dividend. Sabre pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sabre 2 2 5 0 2.33
Finjan 0 0 1 0 3.00

Sabre presently has a consensus price target of $22.63, suggesting a potential upside of 10.74%. Finjan has a consensus price target of $5.00, suggesting a potential upside of 107.89%. Given Finjan’s stronger consensus rating and higher probable upside, analysts clearly believe Finjan is more favorable than Sabre.

Risk and Volatility

Sabre has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Finjan has a beta of -0.13, meaning that its share price is 113% less volatile than the S&P 500.

Institutional & Insider Ownership

33.7% of Finjan shares are held by institutional investors. 1.8% of Sabre shares are held by insiders. Comparatively, 9.6% of Finjan shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Sabre 5.22% 53.97% 6.12%
Finjan 37.53% 100.25% 37.40%

Summary

Finjan beats Sabre on 9 of the 16 factors compared between the two stocks.

Sabre Company Profile

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.

Finjan Company Profile

Finjan Holdings, Inc., through its subsidiaries, operates as a cybersecurity company, provides intellectual property licensing and enforcement services. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The company’s technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also provides investments in cybersecurity technologies and intellectual property; offers cyber risk and cyber security advisory services; and develops mobile security applications. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.

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