Analyzing GAN (NASDAQ:GAN) and Sabre (NASDAQ:SABR)

GAN (NASDAQ:GAN – Get Rating) and Sabre (NASDAQ:SABR – Get Rating) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GAN and Sabre, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GAN	0	2	1	0	2.33
Sabre	1	3	1	0	2.00

GAN presently has a consensus price target of $3.50, suggesting a potential upside of 157.35%. Sabre has a consensus price target of $4.75, suggesting a potential upside of 33.05%. Given GAN’s stronger consensus rating and higher possible upside, analysts clearly believe GAN is more favorable than Sabre.

Insider & Institutional Ownership

29.0% of GAN shares are held by institutional investors. 8.7% of GAN shares are held by insiders. Comparatively, 1.3% of Sabre shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

GAN has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Sabre has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GAN	-137.61%	-27.02%	-14.66%
Sabre	-21.59%	N/A	-8.01%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GAN	$141.53 million	0.43	-$197.50 million	($4.50)	-0.30
Sabre	$2.54 billion	0.47	-$435.45 million	($1.84)	-1.94

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

Summary

Sabre beats GAN on 7 of the 13 factors compared between the two stocks.

About GAN

(Get Rating)

Gan (UK) Ltd. engages in the development and supply of Internet gaming enterprise software-as-a-service solutions. It operates through the Real Money Gaming Operations and Simulated Gaming Operations segments. The company was founded by David McDowell and Kevin O’Neal in 2002 and is headquartered in London, the United Kingdom.

About Sabre

(Get Rating)

Sabre Corp. is a technology solutions provider to the global travel and tourism industry. It provides data-driven business intelligence, mobile, distribution and software-as-a-service solutions. The firm operates through the following segments: Travel Solutions and Hospitality Solutions. The Travel Solutions segment provides global travel for suppliers and buyers through a business-to-business travel marketplace. The Hospitality Solutions segment provides software and solutions, through SaaS and hosted delivery models, to hoteliers around the world. The company was founded in December 2006 and is headquartered in Southlake, TX.