Sabra Health Care REIT (NASDAQ:SBRA) vs. Empire State Realty Trust (NYSE:ESRT) Financial Comparison

Sabra Health Care REIT (NASDAQ:SBRA) and Empire State Realty Trust (NYSE:ESRT) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Sabra Health Care REIT and Empire State Realty Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Health Care REIT	$647.51 million	5.18	$13.76 million	$0.05	289.80
Empire State Realty Trust	$756.13 million	2.07	$53.24 million	$0.30	31.87

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

Dividends

Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 8.3%. Empire State Realty Trust pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Sabra Health Care REIT pays out 2,400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Empire State Realty Trust pays out 46.7% of its earnings in the form of a dividend. Sabra Health Care REIT has raised its dividend for 2 consecutive years. Sabra Health Care REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings for Sabra Health Care REIT and Empire State Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Health Care REIT	0	4	6	0	2.60
Empire State Realty Trust	1	2	0	0	1.67

Sabra Health Care REIT presently has a consensus target price of $15.77, indicating a potential upside of 8.85%. Empire State Realty Trust has a consensus target price of $8.33, indicating a potential downside of 12.83%. Given Sabra Health Care REIT’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Sabra Health Care REIT is more favorable than Empire State Realty Trust.

Volatility & Risk

Sabra Health Care REIT has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Institutional & Insider Ownership

99.4% of Sabra Health Care REIT shares are held by institutional investors. Comparatively, 67.1% of Empire State Realty Trust shares are held by institutional investors. 1.0% of Sabra Health Care REIT shares are held by company insiders. Comparatively, 14.0% of Empire State Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Sabra Health Care REIT and Empire State Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sabra Health Care REIT	2.12%	0.47%	0.25%
Empire State Realty Trust	6.51%	2.85%	1.17%

Summary

Empire State Realty Trust beats Sabra Health Care REIT on 9 of the 17 factors compared between the two stocks.

About Sabra Health Care REIT

As of September 30, 2023, Sabra's investment portfolio included 377 real estate properties held for investment (consisting of (i) 240 Skilled Nursing/Transitional Care facilities, (ii) 43 senior housing communities (Senior Housing – Leased), (iii) 61 senior housing communities operated by third-party property managers pursuant to property management agreements (Senior Housing – Managed), (iv) 18 Behavioral Health facilities and (v) 15 Specialty Hospitals and Other facilities), 12 investments in loans receivable (consisting of two mortgage loans and 10 other loans), five preferred equity investments and two investments in unconsolidated joint ventures. As of September 30, 2023, Sabra's real estate properties held for investment included 37,606 beds/units, spread across the United States and Canada.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. The company is the recognized leader in energy efficiency and indoor environmental quality. ESRT's flagship Empire State Building – the "World's Most Famous Building" – includes its Observatory, Tripadvisor's 2023 Travelers' Choice Awards: Best of the Best the #1 attraction in the US for two consecutive years. As of September 30, 2023, ESRT's portfolio is comprised of approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units across three multifamily properties.