Comparing KnowBe4 (NASDAQ:KNBE) and Sabre (NASDAQ:SABR)

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

Insider & Institutional Ownership

73.4% of KnowBe4 shares are owned by institutional investors. 5.0% of KnowBe4 shares are owned by insiders. Comparatively, 0.9% of Sabre shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Valuation & Earnings

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

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

KnowBe4 has higher earnings, but lower revenue 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for KnowBe4 and Sabre, as provided by MarketBeat.com.

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

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

Summary

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

KnowBe4 Company Profile (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.

Sabre Company Profile (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.

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