Sabra Healthcare REIT (NASDAQ:SBRA) vs. LTC Properties (NYSE:LTC) Head to Head Survey

Sabra Healthcare REIT (NASDAQ:SBRA) and LTC Properties (NYSE:LTC) are both mid-cap real estate companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Sabra Healthcare REIT and LTC Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Healthcare REIT	0	6	7	1	2.64
LTC Properties	0	3	4	1	2.75

Sabra Healthcare REIT currently has a consensus price target of $21.50, indicating a potential upside of 3.19%. LTC Properties has a consensus price target of $47.40, indicating a potential upside of 3.35%. Given LTC Properties’ stronger consensus rating and higher probable upside, analysts plainly believe LTC Properties is more favorable than Sabra Healthcare REIT.

Institutional & Insider Ownership

99.4% of Sabra Healthcare REIT shares are owned by institutional investors. Comparatively, 69.3% of LTC Properties shares are owned by institutional investors. 1.1% of Sabra Healthcare REIT shares are owned by insiders. Comparatively, 2.2% of LTC Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Sabra Healthcare REIT has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sabra Healthcare REIT and LTC Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Healthcare REIT	$919.09 million	5.79	$155.61 million	$0.28	74.41
LTC Properties	$262.85 million	9.41	$117.97 million	$2.71	16.92

Sabra Healthcare REIT has higher revenue and earnings than LTC Properties. LTC Properties 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

Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 5.8%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.0%. Sabra Healthcare REIT pays out 428.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LTC Properties pays out 84.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabra Healthcare REIT	7.78%	2.55%	1.30%
LTC Properties	127.38%	40.82%	23.73%

Summary

LTC Properties beats Sabra Healthcare REIT on 9 of the 16 factors compared between the two stocks.

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.

About LTC Properties

LTC Properties, Inc. is a real estate investment trust, which engages in managing seniors housing and health care properties. It operates through the Texas, Michigan, Florida, Wisconsin, Colorado, and Remaining States geographic segments. The company was founded by Andre C. Dimitriadis on May 12, 1992 and is headquartered in Westlake Village, CA.