Financial Analysis: Sabra Healthcare REIT (SBRA) versus Its Rivals

Sabra Healthcare REIT (NASDAQ:SBRA) is one of 40 public companies in the “Healthcare REITs” industry, but how does it weigh in compared to its competitors? We will compare Sabra Healthcare REIT to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, earnings, valuation, profitability and risk.

Dividends

Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 5.7%. 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. As a group, “Healthcare REITs” companies pay a dividend yield of 4.1% and pay out 163.0% of their earnings in the form of a dividend.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Sabra Healthcare REIT	$774.63 million	$155.61 million	74.61
Sabra Healthcare REIT Competitors	$1.31 billion	$1.61 million	49.24

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

Insider & Institutional Ownership

99.4% of Sabra Healthcare REIT shares are held by institutional investors. Comparatively, 60.4% of shares of all “Healthcare REITs” companies are held by institutional investors. 1.1% of Sabra Healthcare REIT shares are held by company insiders. Comparatively, 3.1% of shares of all “Healthcare REITs” companies are held by company 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sabra Healthcare REIT and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Healthcare REIT	0	6	7	1	2.64
Sabra Healthcare REIT Competitors	419	2002	1983	84	2.39

Sabra Healthcare REIT presently has a consensus price target of $21.50, suggesting a potential upside of 2.92%. As a group, “Healthcare REITs” companies have a potential upside of 10.06%. Given Sabra Healthcare REIT’s competitors higher probable upside, analysts clearly believe Sabra Healthcare REIT has less favorable growth aspects than its competitors.

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	7.78%	2.55%	1.30%
Sabra Healthcare REIT Competitors	22.10%	5.48%	2.88%

Risk and Volatility

Sabra Healthcare REIT has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Sabra Healthcare REIT’s competitors have a beta of 0.85, suggesting that their average stock price is 15% less volatile than the S&P 500.

Summary

Sabra Healthcare REIT competitors beat Sabra Healthcare REIT on 8 of the 15 factors compared.

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.