Analyzing Nexxen International (NASDAQ:NEXN) and Sabre (NASDAQ:SABR)

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

Valuation and Earnings

This table compares Sabre and Nexxen International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabre	$3.03 billion	0.27	-$527.61 million	($0.72)	-2.99
Nexxen International	$365.48 million	1.34	-$21.49 million	$0.39	19.82

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabre	-9.20%	N/A	-2.64%
Nexxen International	3.96%	7.49%	4.70%

Institutional and Insider Ownership

89.4% of Sabre shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. 2.3% of Sabre shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Sabre has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sabre and Nexxen International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabre	0	2	1	0	2.33
Nexxen International	0	1	6	0	2.86

Sabre currently has a consensus target price of $4.53, indicating a potential upside of 110.85%. Nexxen International has a consensus target price of $17.00, indicating a potential upside of 119.92%. Given Nexxen International’s stronger consensus rating and higher possible upside, analysts plainly believe Nexxen International is more favorable than Sabre.

Summary

Nexxen International 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 Nexxen International

Nexxen International Ltd. provides end-to-end software platform that enables advertisers to reach publishers Israel. The company’s demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Tremor International Ltd and changed its name to Nexxen International Ltd. in January 2024. Nexxen International Ltd. was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.