Omega Healthcare Investors (NYSE: OHI) and Aviv REIT (NYSE:AVIV) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Valuation & Earnings

This table compares Omega Healthcare Investors and Aviv REIT’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Omega Healthcare Investors $900.83 million 5.75 $366.41 million $0.76 34.38
Aviv REIT N/A N/A N/A $0.75 48.91

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

Dividends

Omega Healthcare Investors pays an annual dividend of $2.64 per share and has a dividend yield of 10.1%. Aviv REIT does not pay a dividend. Omega Healthcare Investors pays out 347.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Omega Healthcare Investors and Aviv REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omega Healthcare Investors 1 3 2 0 2.17
Aviv REIT 0 0 0 0 N/A

Omega Healthcare Investors currently has a consensus price target of $31.00, suggesting a potential upside of 18.64%. Given Omega Healthcare Investors’ higher probable upside, research analysts clearly believe Omega Healthcare Investors is more favorable than Aviv REIT.

Institutional & Insider Ownership

67.9% of Omega Healthcare Investors shares are held by institutional investors. 1.5% of Omega Healthcare Investors shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Omega Healthcare Investors 17.61% 3.92% 1.82%
Aviv REIT 25.04% 6.86% 2.80%

Summary

Omega Healthcare Investors beats Aviv REIT on 8 of the 13 factors compared between the two stocks.

Omega Healthcare Investors Company Profile

Omega Healthcare Investors, Inc. is a self-administered real estate investment trust (REIT). The Company maintains a portfolio of long-term healthcare facilities and mortgages on healthcare facilities located in the United States and the United Kingdom. It operates through the segment, which consists of investments in healthcare-related real estate properties. It provides lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs) and assisted living facilities (ALFs), independent living facilities, rehabilitation and acute care facilities. Its portfolio consists of long-term leases and mortgage agreements. As of December 31, 2016, its portfolio of investments included 996 healthcare facilities located in 42 states and the United Kingdom and operated by 79 third-party operators. As of December 31, 2016, the Company’s portfolio consisted of 809 SNFs, 101 ALFs, 16 specialty facilities, one medical office building, fixed rate mortgages on 44 SNFs and two ALFs.

Aviv REIT Company Profile

Aviv REIT, Inc. (AVIV) is a real estate investment trust (REIT). The Company is engaged in investments in healthcare properties, consisting primarily of skilled nursing facilities (SNFs), assisted living facilities (ALFs), and other healthcare properties located in the United States. It specializes in the ownership and triple-net leasing of post-acute and long-term care SNFs. Its leases include rent escalation provisions. The Company is the general partner of Aviv Healthcare Properties Limited Partnership. Its portfolio consists of approximately 346 properties, comprising 285 skilled nursing facilities, 35 assisted living facilities, 14 traumatic brain injury facilities, two long-term acute care hospitals, one neuro hospital, two independent living facilities, two medical office buildings, and five land parcels for development, with approximately 29,646 beds in 30 states triple-net leased to 37 operators.

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