Terreno Realty (NYSE:TRNO) vs. Sabra Healthcare REIT (NASDAQ:SBRA) Head to Head Contrast

Terreno Realty (NYSE:TRNO) and Sabra Healthcare REIT (NASDAQ:SBRA) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Volatility & Risk

Terreno Realty has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Earnings and Valuation

This table compares Terreno Realty and Sabra Healthcare REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terreno Realty	$490.40 million	14.57	$402.99 million	$4.09	16.43
Sabra Healthcare REIT	$812.84 million	5.81	$155.61 million	$0.63	29.73

Terreno Realty has higher earnings, but lower revenue than Sabra Healthcare REIT. Terreno Realty is trading at a lower price-to-earnings ratio than Sabra Healthcare REIT, indicating that it is currently the more affordable of the two stocks.

Dividends

Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.1%. Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.4%. Terreno Realty pays out 50.9% of its earnings in the form of a dividend. Sabra Healthcare REIT pays out 190.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Terreno Realty and Sabra Healthcare REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	1	2	8	1	2.75
Sabra Healthcare REIT	0	5	5	0	2.50

Terreno Realty currently has a consensus price target of $69.64, indicating a potential upside of 3.62%. Sabra Healthcare REIT has a consensus price target of $22.40, indicating a potential upside of 19.59%. Given Sabra Healthcare REIT’s higher probable upside, analysts clearly believe Sabra Healthcare REIT is more favorable than Terreno Realty.

Profitability

This table compares Terreno Realty and Sabra Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	86.44%	10.35%	7.98%
Sabra Healthcare REIT	19.22%	5.60%	2.84%

Insider and Institutional Ownership

99.4% of Sabra Healthcare REIT shares are owned by institutional investors. 1.9% of Terreno Realty shares are owned by company insiders. Comparatively, 1.1% of Sabra Healthcare REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Terreno Realty beats Sabra Healthcare REIT on 13 of the 18 factors compared between the two stocks.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.

About Sabra Healthcare REIT

Sabra Health Care REIT, Inc. engages in the business of acquiring, financing, and owning real estate property. The company was founded on May 10, 2010 and is headquartered in Tustin, CA.