Cheesecake Factory (NASDAQ:CAKE – Get Free Report) and Sabre (NASDAQ:SABR – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Profitability
This table compares Cheesecake Factory and Sabre’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cheesecake Factory | 4.61% | 43.97% | 6.18% |
| Sabre | 25.14% | N/A | -2.12% |
Risk and Volatility
Cheesecake Factory has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Sabre has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Insider & Institutional Ownership
94.5% of Cheesecake Factory shares are owned by institutional investors. Comparatively, 89.4% of Sabre shares are owned by institutional investors. 8.0% of Cheesecake Factory shares are owned by insiders. Comparatively, 2.8% of Sabre shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Cheesecake Factory and Sabre”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cheesecake Factory | $3.75 billion | 1.49 | $148.43 million | $3.69 | 30.47 |
| Sabre | $2.77 billion | 0.22 | $524.62 million | $1.65 | 0.93 |
Sabre has lower revenue, but higher earnings than Cheesecake Factory. Sabre is trading at a lower price-to-earnings ratio than Cheesecake Factory, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Cheesecake Factory and Sabre, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cheesecake Factory | 2 | 11 | 4 | 1 | 2.22 |
| Sabre | 1 | 3 | 1 | 0 | 2.00 |
Cheesecake Factory presently has a consensus price target of $92.67, suggesting a potential downside of 17.59%. Sabre has a consensus price target of $1.75, suggesting a potential upside of 13.64%. Given Sabre’s higher probable upside, analysts clearly believe Sabre is more favorable than Cheesecake Factory.
Summary
Cheesecake Factory beats Sabre on 10 of the 14 factors compared between the two stocks.
About Cheesecake Factory
The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors. It operates restaurants under the brands comprising The Cheesecake Factory, North Italia, Flower Child, Fox Restaurant Concepts. The Cheesecake Factory Incorporated was founded in 1972 and is headquartered in Calabasas, California.
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.
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