Head-To-Head Comparison: Sabre (NASDAQ:SABR) and Tyler Technologies (NYSE:TYL)

Sabre (NASDAQ:SABR) and Tyler Technologies (NYSE:TYL) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

This table compares Sabre and Tyler Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sabre	-12.18%	N/A	-2.26%
Tyler Technologies	13.66%	10.34%	6.87%

Risk & Volatility

Sabre has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabre	2	3	2	0	2.00
Tyler Technologies	0	4	7	0	2.64

Sabre currently has a consensus target price of $3.80, indicating a potential upside of 98.95%. Tyler Technologies has a consensus target price of $682.89, indicating a potential upside of 42.69%. Given Sabre’s higher possible upside, analysts plainly believe Sabre is more favorable than Tyler Technologies.

Earnings & Valuation

This table compares Sabre and Tyler Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabre	$3.03 billion	0.25	-$278.76 million	($0.91)	-2.10
Tyler Technologies	$2.25 billion	9.22	$263.03 million	$7.00	68.37

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

Institutional & Insider Ownership

89.4% of Sabre shares are held by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are held by institutional investors. 2.3% of Sabre shares are held by company insiders. Comparatively, 1.1% of Tyler Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Tyler Technologies beats Sabre on 10 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 Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.