Sabra Healthcare REIT (SBRA) vs. The Competition Head-To-Head Analysis

Sabra Healthcare REIT (NASDAQ: SBRA) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it contrast to its competitors? We will compare Sabra Healthcare REIT to related companies based on the strength of its analyst recommendations, risk, earnings, institutional ownership, profitability, valuation and dividends.

Dividends

Sabra Healthcare REIT pays an annual dividend of $1.44 per share and has a dividend yield of 6.7%. Sabra Healthcare REIT pays out 122.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.2% and pay out 125.2% of their earnings in the form of a dividend. Sabra Healthcare REIT is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sabra Healthcare REIT and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sabra Healthcare REIT 1 4 4 0 2.33
Sabra Healthcare REIT Competitors 128 705 641 12 2.36

Sabra Healthcare REIT currently has a consensus price target of $25.33, indicating a potential upside of 17.01%. As a group, “Healthcare REITs” companies have a potential upside of 3.11%. Given Sabra Healthcare REIT’s higher possible upside, research analysts clearly believe Sabra Healthcare REIT is more favorable than its competitors.

Insider & Institutional Ownership

99.3% of Sabra Healthcare REIT shares are held by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are held by institutional investors. 2.6% of Sabra Healthcare REIT shares are held by insiders. Comparatively, 1.9% of shares of all “Healthcare REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Sabra Healthcare REIT and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sabra Healthcare REIT 34.99% 8.72% 3.90%
Sabra Healthcare REIT Competitors 38.21% 8.11% 4.09%

Volatility & Risk

Sabra Healthcare REIT has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Sabra Healthcare REIT’s competitors have a beta of 0.50, suggesting that their average share price is 50% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sabra Healthcare REIT and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sabra Healthcare REIT N/A N/A 18.35
Sabra Healthcare REIT Competitors $863.81 million $523.61 million 39.10

Sabra Healthcare REIT’s competitors have higher revenue and earnings than Sabra Healthcare REIT. Sabra Healthcare REIT is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Sabra Healthcare REIT beats its competitors on 8 of the 14 factors compared.

About Sabra Healthcare REIT

Sabra Health Care REIT, Inc. is a real estate investment trust. The Company, through its subsidiaries, owns and invests in real estate serving the healthcare industry. The Company’s segment includes investments in healthcare-related real estate properties. The Company’s primary business consists of acquiring, financing and owning real estate property to be leased to third-party tenants in the healthcare sector. As of December 31, 2016, the Company’s investment portfolio consisted of 183 real estate properties held for investment (consisting of 97 skilled nursing/transitional care facilities, 85 senior housing facilities, and one acute care hospital); 10 investments in loans receivable (consisting of four mortgage loans, one construction loan, one mezzanine loan, three pre-development loans and one debtor-in-possession (DIP) loan) and 12 preferred equity investments. It has properties located in New Hampshire, Texas, Florida, Kentucky, Ohio, Maryland and Nebraska, among others.

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