Reviewing Sabra Healthcare REIT (SBRA) and Its Rivals

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

Dividends

Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 5.9%. Sabra Healthcare REIT pays out 461.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 4.2% and pay out 214.2% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Sabra Healthcare REIT and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sabra Healthcare REIT	$774.63 million	$155.61 million	78.27
Sabra Healthcare REIT Competitors	$1.27 billion	$1.61 million	49.36

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

Volatility & Risk

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabra Healthcare REIT	7.78%	2.56%	1.29%
Sabra Healthcare REIT Competitors	19.33%	4.54%	2.32%

Insider and Institutional Ownership

99.4% of Sabra Healthcare REIT shares are held by institutional investors. Comparatively, 62.8% of shares of all “Healthcare REITs” companies are held by institutional investors. 1.1% of Sabra Healthcare REIT shares are held by insiders. Comparatively, 3.1% of shares of all “Healthcare REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Sabra Healthcare REIT and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Healthcare REIT	0	7	7	0	2.50
Sabra Healthcare REIT Competitors	419	1997	1980	79	2.38

Sabra Healthcare REIT presently has a consensus target price of $21.50, suggesting a potential upside of 5.65%. As a group, “Healthcare REITs” companies have a potential upside of 11.61%. Given Sabra Healthcare REIT’s peers higher probable upside, analysts clearly believe Sabra Healthcare REIT has less favorable growth aspects than its peers.

Summary

Sabra Healthcare REIT peers beat Sabra Healthcare REIT on 9 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.