Orion Office REIT (NYSE:ONL) versus Sabra Healthcare REIT (NASDAQ:SBRA) Head-To-Head Survey

Orion Office REIT (NYSE:ONL) and Sabra Healthcare REIT (NASDAQ:SBRA) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

Orion Office REIT has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Profitability

This table compares Orion Office REIT and Sabra Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Office REIT	-98.36%	-21.88%	-11.79%
Sabra Healthcare REIT	19.22%	5.60%	2.84%

Dividends

Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 2.7%. Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 5.9%. Orion Office REIT pays out -3.1% of its earnings in the form of a dividend. Sabra Healthcare REIT pays out 190.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Orion Office REIT and Sabra Healthcare REIT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Office REIT	$147.65 million	1.13	-$139.31 million	($2.56)	-1.15
Sabra Healthcare REIT	$774.63 million	6.66	$155.61 million	$0.63	32.46

Sabra Healthcare REIT has higher revenue and earnings than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than Sabra Healthcare REIT, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Orion Office REIT and Sabra Healthcare REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Office REIT	1	1	1	0	2.00
Sabra Healthcare REIT	0	5	5	0	2.50

Orion Office REIT currently has a consensus price target of $3.50, indicating a potential upside of 19.17%. Sabra Healthcare REIT has a consensus price target of $22.30, indicating a potential upside of 9.05%. Given Orion Office REIT’s higher probable upside, research analysts clearly believe Orion Office REIT is more favorable than Sabra Healthcare REIT.

Insider & Institutional Ownership

80.0% of Orion Office REIT shares are held by institutional investors. Comparatively, 99.4% of Sabra Healthcare REIT shares are held by institutional investors. 1.6% of Orion Office REIT shares are held by company insiders. Comparatively, 1.1% of Sabra Healthcare REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Sabra Healthcare REIT beats Orion Office REIT on 12 of the 16 factors compared between the two stocks.

About Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.

About Sabra Healthcare REIT

Sabra Health Care REIT, Inc. engages in the business of acquiring, financing, and owning real estate property. The company was founded on May 10, 2010 and is headquartered in Tustin, CA.