Critical Contrast: Sabre (SABR) and Sify Technologies (SIFY)

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

Dividends

Sify Technologies pays an annual dividend of $0.01 per share and has a dividend yield of 0.6%. Sabre pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. Sabre pays out 43.1% of its earnings in the form of a dividend. Sabre has increased its dividend for 3 consecutive years. Sabre is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sify Technologies $318.04 million 0.22 $14.19 million N/A N/A
Sabre $3.60 billion 2.00 $242.53 million $1.30 20.08

Sabre has higher revenue and earnings than Sify Technologies.

Insider and Institutional Ownership

5.2% of Sify Technologies shares are owned by institutional investors. Comparatively, 99.8% of Sabre shares are owned by institutional investors. 77.0% of Sify Technologies shares are owned by company insiders. Comparatively, 0.7% of Sabre shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Sify Technologies and Sabre, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sify Technologies 0 0 0 0 N/A
Sabre 1 2 6 0 2.56

Sify Technologies currently has a consensus target price of $3.00, suggesting a potential upside of 71.43%. Sabre has a consensus target price of $26.71, suggesting a potential upside of 2.31%. Given Sify Technologies’ higher possible upside, equities analysts clearly believe Sify Technologies is more favorable than Sabre.

Risk & Volatility

Sify Technologies has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Sabre has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Sify Technologies N/A N/A N/A
Sabre 9.41% 47.59% 6.39%

Summary

Sabre beats Sify Technologies on 10 of the 14 factors compared between the two stocks.

About Sify Technologies

Sify Technologies Limited provides integrated ICT solutions and services in India and internationally. The company operates in five segments: Telecom Services, Data Center Services, Cloud and Managed Services, Technology Integration Services, and Applications Integration Services. The Telecom Services segment offers Internet protocol based virtual private network services, including intranets, extranets, and remote access applications; and last mile connectivity services. The Data Center Services segment provides co-location, regular backup, server load balancing, and remote backup solutions; messaging, shared hosting, network, and security services; storage and virtualization services; and managed voice services to resident enterprises. The Cloud and Managed Services segment offers on-demand hosting services; and remote and onsite infrastructure management services that manages and supports customer operating systems, applications, and database layers, as well as utility-based on-demand storage service that manages the lifecycle of enterprise information. The Technology Integration Services segment provides data center build, network integration, information security, end user computing, and collaborative tools and solutions. The Applications Integration Services segment offers a range of Web-applications; and operates online portals, including sify.com and samachar.com, which acts as principal entry points and gateway for accessing the Internet, as well as related content sites. Sify Technologies Limited also provides Website design, development, content management, online assessment tools, and search engine optimization services; messaging and collaboration services and solutions; online testing engine and network management services; and online exam engine solutions. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. The company was founded in 1995 and is headquartered in Chennai, India.

About Sabre

Sabre Corporation, through its subsidiary, Sabre Holdings Corporation, provides technology solutions to the travel and tourism industry worldwide. It operates through two segments, Travel Network, and Airline and Hospitality Solutions. The Travel Network 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. The Airline and Hospitality Solutions segment provides a portfolio of software technology products and solutions through software-as-a-service and hosted delivery models to airlines, hoteliers, and other travel suppliers. Its products include SabreSonic Customer Sales & Service, a reservation system that provides capabilities around managing sales and customer service across an airline's diverse touch points; Sabre AirVision Marketing & Planning, a set of airline commercial planning solutions; and Sabre AirCentre Enterprise Operations, a set of solutions for planning and management of airline, airport, and customer operations. This segment also provides software and solutions to hoteliers through SynXis, a central reservation system; SynXis Property Manager Solution for property management; and marketing, professional, and revenue management services. Sabre Corporation was founded in 2006 and is headquartered in Southlake, Texas.

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