Financial Analysis: Omega Healthcare Investors (OHI) and Its Competitors
Omega Healthcare Investors (NYSE: OHI) is one of 26 public companies in the “Healthcare REITs” industry, but how does it contrast to its rivals? We will compare Omega Healthcare Investors to similar companies based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, earnings, dividends and risk.
This is a breakdown of current ratings and price targets for Omega Healthcare Investors and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Omega Healthcare Investors||0||2||0||0||2.00|
|Omega Healthcare Investors Competitors||203||831||675||12||2.29|
Omega Healthcare Investors currently has a consensus price target of $33.00, suggesting a potential upside of 0.46%. As a group, “Healthcare REITs” companies have a potential upside of 0.04%. Given Omega Healthcare Investors’ higher possible upside, equities analysts clearly believe Omega Healthcare Investors is more favorable than its rivals.
Volatility and Risk
Omega Healthcare Investors has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors’ rivals have a beta of 0.50, suggesting that their average stock price is 50% less volatile than the S&P 500.
Valuation and Earnings
This table compares Omega Healthcare Investors and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Omega Healthcare Investors||$926.66 million||$853.50 million||17.38|
|Omega Healthcare Investors Competitors||$788.38 million||$482.52 million||40.56|
Omega Healthcare Investors has higher revenue and earnings than its rivals. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Omega Healthcare Investors pays an annual dividend of $2.56 per share and has a dividend yield of 7.8%. Omega Healthcare Investors pays out 135.5% 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 5.0% and pay out 124.4% of their earnings in the form of a dividend. Omega Healthcare Investors has raised its dividend for 7 consecutive years.
This table compares Omega Healthcare Investors and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Omega Healthcare Investors||40.20%||8.88%||4.17%|
|Omega Healthcare Investors Competitors||38.21%||7.68%||3.77%|
Insider & Institutional Ownership
74.6% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 84.4% of shares of all “Healthcare REITs” companies are owned by institutional investors. 4.5% of Omega Healthcare Investors shares are owned by company insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Omega Healthcare Investors beats its rivals on 9 of the 15 factors compared.
Omega Healthcare Investors Company Profile
Omega Healthcare Investors, Inc. is a self-administered real estate investment trust (REIT). The Company maintains a portfolio of long-term healthcare facilities and mortgages on healthcare facilities located in the United States and the United Kingdom. It operates through the segment, which consists of investments in healthcare-related real estate properties. It provides lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs) and assisted living facilities (ALFs), independent living facilities, rehabilitation and acute care facilities. Its portfolio consists of long-term leases and mortgage agreements. As of December 31, 2016, its portfolio of investments included 996 healthcare facilities located in 42 states and the United Kingdom and operated by 79 third-party operators. As of December 31, 2016, the Company’s portfolio consisted of 809 SNFs, 101 ALFs, 16 specialty facilities, one medical office building, fixed rate mortgages on 44 SNFs and two ALFs.
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