National Storage Affiliates Trust (NYSE:NSA) and Sabra Health Care REIT (NASDAQ:SBRA) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Valuation and Earnings

This table compares National Storage Affiliates Trust and Sabra Health Care REIT’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Storage Affiliates Trust $268.13 million 5.38 $2.96 million $1.24 20.57
Sabra Health Care REIT $405.65 million 9.89 $158.38 million $2.43 9.26

Sabra Health Care REIT has higher revenue and earnings than National Storage Affiliates Trust. Sabra Health Care REIT is trading at a lower price-to-earnings ratio than National Storage Affiliates Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for National Storage Affiliates Trust and Sabra Health Care REIT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Storage Affiliates Trust 0 7 3 0 2.30
Sabra Health Care REIT 0 4 5 0 2.56

National Storage Affiliates Trust presently has a consensus target price of $28.00, suggesting a potential upside of 9.76%. Sabra Health Care REIT has a consensus target price of $22.50, suggesting a potential downside of 0.04%. Given National Storage Affiliates Trust’s higher possible upside, analysts plainly believe National Storage Affiliates Trust is more favorable than Sabra Health Care REIT.

Profitability

This table compares National Storage Affiliates Trust and Sabra Health Care REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Storage Affiliates Trust 4.63% 1.29% 0.60%
Sabra Health Care REIT 62.60% 11.21% 5.53%

Dividends

National Storage Affiliates Trust pays an annual dividend of $1.16 per share and has a dividend yield of 4.5%. Sabra Health Care REIT pays an annual dividend of $1.80 per share and has a dividend yield of 8.0%. National Storage Affiliates Trust pays out 93.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sabra Health Care REIT pays out 74.1% of its earnings in the form of a dividend. National Storage Affiliates Trust has raised its dividend for 2 consecutive years and Sabra Health Care REIT has raised its dividend for 7 consecutive years. Sabra Health Care REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

National Storage Affiliates Trust has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Sabra Health Care REIT has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Insider and Institutional Ownership

85.0% of National Storage Affiliates Trust shares are owned by institutional investors. Comparatively, 90.4% of Sabra Health Care REIT shares are owned by institutional investors. 13.1% of National Storage Affiliates Trust shares are owned by company insiders. Comparatively, 1.1% of Sabra Health Care REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Sabra Health Care REIT beats National Storage Affiliates Trust on 14 of the 17 factors compared between the two stocks.

National Storage Affiliates Trust Company Profile

National Storage Affiliates Trust is a Maryland real estate investment trust focused on the ownership, operation and acquisition of self storage properties located within the top 100 metropolitan statistical areas throughout the United States. The Company currently holds ownership interests in and operates 533 self storage properties located in 29 states with approximately 33 million rentable square feet. NSA is the sixth largest owner and operator of self storage properties among public and private companies in the U.S.

Sabra Health Care REIT Company Profile

As of June 30, 2018, Sabra's investment portfolio included 487 real estate properties held for investment (consisting of (i) 352 Skilled Nursing/Transitional Care facilities, (ii) 89 Senior Housing communities (?Senior Housing – Leased?), (iii) 24 Senior Housing communities operated by third-party property managers pursuant to property management agreements (?Senior Housing – Managed?) and (iv) 22 Specialty Hospitals and Other facilities), one asset held for sale, one investment in a direct financing lease, 22 investments in loans receivable (consisting of (i) one mortgage loan, (ii) two construction loans, (iii) one mezzanine loan, (iv) one pre-development loan and (v) 17 other loans), 13 preferred equity investments and one investment in an unconsolidated joint venture that owns 172 Senior Housing – Managed communities. As of June 30, 2018, Sabra's real estate properties held for investment included 50,030 beds/units and its unconsolidated joint venture included 7,652 beds/units, spread across the United States and Canada.

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