Head to Head Contrast: Welltower (HCN) & Sabra Healthcare REIT (NASDAQ:SBRA)
Sabra Healthcare REIT (NASDAQ: SBRA) and Welltower (NYSE:HCN) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitabiliy, valuation and analyst recommendations.
Valuation & Earnings
This table compares Sabra Healthcare REIT and Welltower’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sabra Healthcare REIT||N/A||N/A||N/A||$1.44||16.24|
|Welltower||$4.20 billion||6.46||$2.09 billion||$3.24||22.85|
Welltower has higher revenue and earnings than Sabra Healthcare REIT. Sabra Healthcare REIT is trading at a lower price-to-earnings ratio than Welltower, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Sabra Healthcare REIT has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Welltower has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.
Insider & Institutional Ownership
99.2% of Sabra Healthcare REIT shares are held by institutional investors. Comparatively, 86.1% of Welltower shares are held by institutional investors. 2.3% of Sabra Healthcare REIT shares are held by company insiders. Comparatively, 0.2% of Welltower shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Sabra Healthcare REIT and Welltower, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sabra Healthcare REIT||2||6||1||0||1.89|
Sabra Healthcare REIT currently has a consensus price target of $25.67, suggesting a potential upside of 9.73%. Welltower has a consensus price target of $73.31, suggesting a potential downside of 1.00%. Given Sabra Healthcare REIT’s higher possible upside, research analysts clearly believe Sabra Healthcare REIT is more favorable than Welltower.
Sabra Healthcare REIT pays an annual dividend of $1.72 per share and has a dividend yield of 7.4%. Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 4.7%. Sabra Healthcare REIT pays out 119.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower pays out 107.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower has raised its dividend for 7 consecutive years.
This table compares Sabra Healthcare REIT and Welltower’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sabra Healthcare REIT||40.22%||10.35%||4.66%|
Sabra Healthcare REIT beats Welltower on 8 of the 15 factors compared between the two stocks.
Sabra Healthcare REIT Company Profile
Sabra Health Care REIT, Inc. is a real estate investment trust. The Company, through its subsidiaries, owns and invests in real estate serving the healthcare industry. The Company’s segment includes investments in healthcare-related real estate properties. The Company’s primary business consists of acquiring, financing and owning real estate property to be leased to third-party tenants in the healthcare sector. As of December 31, 2016, the Company’s investment portfolio consisted of 183 real estate properties held for investment (consisting of 97 skilled nursing/transitional care facilities, 85 senior housing facilities, and one acute care hospital); 10 investments in loans receivable (consisting of four mortgage loans, one construction loan, one mezzanine loan, three pre-development loans and one debtor-in-possession (DIP) loan) and 12 preferred equity investments. It has properties located in New Hampshire, Texas, Florida, Kentucky, Ohio, Maryland and Nebraska, among others.
Welltower Company Profile
Welltower Inc. invests with seniors housing operators, post-acute providers and health systems to fund real estate and infrastructure. The Company invests in seniors housing and healthcare real estate. It operates in three segments: triple-net, seniors housing operating and outpatient medical. Welltower, a real estate investment trust (REIT), owns interests in properties concentrated in markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities, and outpatient medical properties. Its triple-net properties include independent living facilities, independent supportive living facilities (Canada), continuing care retirement communities, assisted living facilities, care homes with and without nursing (the United Kingdom), Alzheimer’s/dementia care facilities, long-term/post-acute care facilities and hospitals. Its outpatient medical properties include outpatient medical buildings.
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