Omega Healthcare Investors (NYSE:OHI) & American Assets Trust (NYSE:AAT) Critical Contrast

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

Earnings and Valuation

This table compares American Assets Trust and Omega Healthcare Investors’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Assets Trust	$441.16 million	2.93	$64.69 million	$0.84	25.27
Omega Healthcare Investors	$949.74 million	8.08	$242.18 million	$0.99	31.40

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.

Volatility & Risk

American Assets Trust has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Dividends

American Assets Trust pays an annual dividend of $1.34 per share and has a dividend yield of 6.3%. Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 8.6%. 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. 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 has increased its dividend for 4 consecutive years.

Profitability

This table compares American Assets Trust and Omega Healthcare Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Assets Trust	11.42%	4.31%	1.68%
Omega Healthcare Investors	25.50%	6.41%	2.60%

Institutional and Insider Ownership

90.4% of American Assets Trust shares are held by institutional investors. Comparatively, 65.3% of Omega Healthcare Investors shares are held by institutional investors. 37.3% of American Assets Trust shares are held by insiders. Comparatively, 1.2% of Omega Healthcare Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for American Assets Trust and Omega Healthcare Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Assets Trust	0	1	0	0	2.00
Omega Healthcare Investors	0	6	6	0	2.50

American Assets Trust currently has a consensus target price of $22.00, suggesting a potential upside of 3.63%. Omega Healthcare Investors has a consensus target price of $33.58, suggesting a potential upside of 8.00%. Given Omega Healthcare Investors’ stronger consensus rating and higher possible upside, analysts clearly believe Omega Healthcare Investors is more favorable than American Assets Trust.

Summary

Omega Healthcare Investors beats American Assets Trust on 12 of the 17 factors compared between the two stocks.

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.

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.