Orion Office REIT (NYSE:ONL) & Sabra Healthcare REIT (NASDAQ:SBRA) Head-To-Head Survey

Orion Office REIT (NYSE:ONL) and Sabra Healthcare REIT (NASDAQ:SBRA) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Risk & Volatility

Orion Office REIT has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Insider and Institutional Ownership

80.0% of Orion Office REIT shares are held by institutional investors. Comparatively, 99.4% of Sabra Healthcare REIT shares are held by institutional investors. 1.6% of Orion Office REIT shares are held by insiders. Comparatively, 1.1% of Sabra Healthcare REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Orion Office REIT and Sabra Healthcare REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Office REIT	1	1	1	0	2.00
Sabra Healthcare REIT	0	5	5	0	2.50

Orion Office REIT currently has a consensus target price of $3.50, suggesting a potential upside of 17.33%. Sabra Healthcare REIT has a consensus target price of $22.40, suggesting a potential upside of 17.59%. Given Sabra Healthcare REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Sabra Healthcare REIT is more favorable than Orion Office REIT.

Earnings & Valuation

This table compares Orion Office REIT 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
Orion Office REIT	$147.65 million	1.15	-$139.31 million	($2.56)	-1.17
Sabra Healthcare REIT	$812.84 million	5.91	$155.61 million	$0.63	30.24

Sabra Healthcare REIT has higher revenue and earnings than Orion Office REIT. Orion Office REIT 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

Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 2.7%. Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.3%. Orion Office REIT pays out -3.1% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orion Office REIT	-98.36%	-21.88%	-11.79%
Sabra Healthcare REIT	19.22%	5.60%	2.84%

Summary

Sabra Healthcare REIT beats Orion Office REIT on 13 of the 16 factors compared between the two stocks.

About Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.

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.