Sabra Healthcare REIT (NASDAQ: SBRA) and Universal Health Realty Income Trust (NYSE:UHT) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
99.3% of Sabra Healthcare REIT shares are owned by institutional investors. Comparatively, 59.2% of Universal Health Realty Income Trust shares are owned by institutional investors. 2.6% of Sabra Healthcare REIT shares are owned by insiders. Comparatively, 1.9% of Universal Health Realty Income Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Sabra Healthcare REIT and Universal Health Realty Income Trust’s 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%|
|Universal Health Realty Income Trust||62.40%||8.23%||3.27%|
Earnings & Valuation
This table compares Sabra Healthcare REIT and Universal Health Realty Income Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sabra Healthcare REIT||N/A||N/A||N/A||$1.18||18.17|
|Universal Health Realty Income Trust||$74.03 million||14.29||$51.20 million||$3.23||24.07|
Universal Health Realty Income Trust has higher revenue and earnings than Sabra Healthcare REIT. Sabra Healthcare REIT is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Sabra Healthcare REIT has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.
Sabra Healthcare REIT pays an annual dividend of $1.44 per share and has a dividend yield of 6.7%. Universal Health Realty Income Trust pays an annual dividend of $2.64 per share and has a dividend yield of 3.4%. 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. Universal Health Realty Income Trust pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust has increased its dividend for 31 consecutive years.
This is a breakdown of recent ratings and price targets for Sabra Healthcare REIT and Universal Health Realty Income Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sabra Healthcare REIT||1||4||4||0||2.33|
|Universal Health Realty Income Trust||0||0||0||0||N/A|
Sabra Healthcare REIT presently has a consensus price target of $25.33, suggesting a potential upside of 18.16%. Given Sabra Healthcare REIT’s higher possible upside, research analysts clearly believe Sabra Healthcare REIT is more favorable than Universal Health Realty Income Trust.
Sabra Healthcare REIT beats Universal Health Realty Income Trust on 8 of the 14 factors compared between the two stocks.
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.
About Universal Health Realty Income Trust
Universal Health Realty Income Trust is a real estate investment trust (REIT). The Company invests in healthcare and human service related facilities, including acute care hospitals, rehabilitation hospitals, sub-acute facilities, surgery centers, free-standing emergency departments, childcare centers and medical office buildings (MOBs). As of February 28, 2017, the Company had 67 real estate investments located in 20 states in the United States consisting of six hospital facilities, including three acute care, one rehabilitation and two sub-acute; 54 MOBs; three free-standing emergency departments (FEDs), and four preschool and childcare centers. The Company’s facilities include Southwest Healthcare System, Inland Valley Campus, Wellington Regional Medical Center, Kindred Hospital Chicago Central, Vibra Hospital of Corpus Christi, Chesterbrook Academy, and Desert Valley Medical Center.
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