Omega Healthcare Investors (NYSE:OHI – Get Free Report) and American Assets Trust (NYSE:AAT – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Profitability
This table compares Omega Healthcare Investors and American Assets Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Omega Healthcare Investors | 25.50% | 6.41% | 2.60% |
| American Assets Trust | 11.42% | 4.31% | 1.68% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Omega Healthcare Investors and American Assets Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Omega Healthcare Investors | 0 | 6 | 6 | 0 | 2.50 |
| American Assets Trust | 0 | 1 | 0 | 0 | 2.00 |
Dividends
Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 8.7%. American Assets Trust pays an annual dividend of $1.34 per share and has a dividend yield of 6.3%. Omega Healthcare Investors pays out 270.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Assets Trust pays out 159.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Assets Trust has raised its dividend for 4 consecutive years.
Risk & Volatility
Omega Healthcare Investors has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, American Assets Trust has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Insider & Institutional Ownership
65.3% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 90.4% of American Assets Trust shares are owned by institutional investors. 1.2% of Omega Healthcare Investors shares are owned by company insiders. Comparatively, 37.3% of American Assets Trust shares are owned by company 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.
Earnings and Valuation
This table compares Omega Healthcare Investors and American Assets Trust’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Omega Healthcare Investors | $949.74 million | 7.98 | $242.18 million | $0.99 | 31.21 |
| American Assets Trust | $441.16 million | 2.93 | $64.69 million | $0.84 | 25.29 |
Omega Healthcare Investors has higher revenue and earnings than American Assets Trust. American Assets Trust is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, indicating that it is currently the more affordable of the two stocks.
Summary
Omega Healthcare Investors beats American Assets Trust on 12 of the 17 factors compared between the two stocks.
About Omega Healthcare Investors
Omega is a REIT that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the U.S., as well as in the U.K.
About American Assets Trust
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust ("REIT"), headquartered in San Diego, California. The company has over 55 years of experience in acquiring, improving, developing and managing premier office, retail, and residential properties throughout the United States in some of the nation's most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. The company's office portfolio comprises approximately 4.1 million rentable square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the company owns one mixed-use property (including approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,110 multifamily units. In 2011, the company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes.
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