Omega Healthcare Investors (NYSE:OHI) and Crown Castle (NYSE:CCI) Head-To-Head Analysis

Omega Healthcare Investors (NYSE:OHI) and Crown Castle (NYSE:CCI) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Valuation and Earnings

This table compares Omega Healthcare Investors and Crown Castle”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.19 billion	12.01	$572.03 million	$2.07	23.19
Crown Castle	$4.26 billion	9.18	$444.00 million	$2.42	37.04

Omega Healthcare Investors has higher earnings, but lower revenue than Crown Castle. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than Crown Castle, indicating that it is currently the more affordable of the two stocks.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 5.6%. Crown Castle pays an annual dividend of $4.25 per share and has a dividend yield of 4.7%. Omega Healthcare Investors pays out 129.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crown Castle pays out 175.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Omega Healthcare Investors and Crown Castle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	51.14%	11.86%	6.10%
Crown Castle	25.13%	-64.64%	3.30%

Institutional & Insider Ownership

65.3% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 90.8% of Crown Castle shares are owned by institutional investors. 1.5% of Omega Healthcare Investors shares are owned by insiders. Comparatively, 0.1% of Crown Castle shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Omega Healthcare Investors has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Crown Castle has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Omega Healthcare Investors and Crown Castle, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	1	7	5	1	2.43
Crown Castle	0	11	8	2	2.57

Omega Healthcare Investors presently has a consensus price target of $48.83, indicating a potential upside of 1.75%. Crown Castle has a consensus price target of $99.39, indicating a potential upside of 10.87%. Given Crown Castle’s stronger consensus rating and higher probable upside, analysts clearly believe Crown Castle is more favorable than Omega Healthcare Investors.

Summary

Crown Castle beats Omega Healthcare Investors on 9 of the 17 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

About Crown Castle

Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service – bringing information, ideas and innovations to the people and businesses that need them.