Comparing Sabra Healthcare REIT (SBRA) & Ventas (VTR)
Sabra Healthcare REIT (NASDAQ: SBRA) and Ventas (NYSE:VTR) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.
Sabra Healthcare REIT pays an annual dividend of $1.72 per share and has a dividend yield of 8.3%. Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 4.7%. Sabra Healthcare REIT pays out 145.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ventas pays out 157.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sabra Healthcare REIT has raised its dividend for 6 consecutive years. Sabra Healthcare REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Sabra Healthcare REIT and Ventas’ 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%|
Insider & Institutional Ownership
99.3% of Sabra Healthcare REIT shares are held by institutional investors. Comparatively, 88.6% of Ventas shares are held by institutional investors. 2.3% of Sabra Healthcare REIT shares are held by company insiders. Comparatively, 1.3% of Ventas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Sabra Healthcare REIT and Ventas’ 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||17.55|
|Ventas||$3.52 billion||6.69||$1.88 billion||$1.97||33.56|
Ventas has higher revenue and earnings than Sabra Healthcare REIT. Sabra Healthcare REIT is trading at a lower price-to-earnings ratio than Ventas, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Sabra Healthcare REIT and Ventas, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sabra Healthcare REIT||1||4||2||0||2.14|
Sabra Healthcare REIT presently has a consensus price target of $26.00, indicating a potential upside of 25.54%. Ventas has a consensus price target of $62.33, indicating a potential downside of 5.73%. Given Sabra Healthcare REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Sabra Healthcare REIT is more favorable than Ventas.
Volatility and Risk
Sabra Healthcare REIT has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Ventas has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.
Sabra Healthcare REIT beats Ventas on 12 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.
Ventas, Inc. is a real estate investment trust (REIT) with its properties located throughout the United States, Canada and the United Kingdom. The Company operates through three segments: triple-net leased properties, senior living operations and office operations. Under its triple-net leased properties segment, the Company invests in and owns seniors housing and healthcare properties throughout the United States and the United Kingdom and leases those properties to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses. In its senior living operations segment, it invests in seniors housing communities throughout the United States and Canada and engages independent operators to manage those communities. In its office operations segment, the Company primarily acquires, owns, develops, leases and manages medical office buildings (MOBs) and life science and innovation centers throughout the United States.
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