Comparing Sabra Health Care REIT (NASDAQ:SBRA) & American Tower (NYSE:AMT)

Sabra Health Care REIT (NASDAQ:SBRA) and American Tower (NYSE:AMT) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares Sabra Health Care REIT and American Tower”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Health Care REIT	$647.51 million	6.17	$13.76 million	$0.41	41.20
American Tower	$11.14 billion	7.86	$1.48 billion	$2.37	79.13

American Tower has higher revenue and earnings than Sabra Health Care REIT. Sabra Health Care REIT is trading at a lower price-to-earnings ratio than American Tower, 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 7.1%. American Tower pays an annual dividend of $6.48 per share and has a dividend yield of 3.5%. Sabra Health Care REIT pays out 292.7% 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 Tower pays out 273.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Sabra Health Care REIT has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, American Tower has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Sabra Health Care REIT and American Tower’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sabra Health Care REIT	14.20%	3.51%	1.81%
American Tower	10.05%	22.01%	3.55%

Institutional & Insider Ownership

99.4% of Sabra Health Care REIT shares are owned by institutional investors. Comparatively, 92.7% of American Tower shares are owned by institutional investors. 1.1% of Sabra Health Care REIT shares are owned by insiders. Comparatively, 0.2% of American Tower shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sabra Health Care REIT and American Tower, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Health Care REIT	0	3	4	1	2.75
American Tower	0	3	9	2	2.93

Sabra Health Care REIT currently has a consensus target price of $18.86, suggesting a potential upside of 11.65%. American Tower has a consensus target price of $226.23, suggesting a potential upside of 20.64%. Given American Tower’s stronger consensus rating and higher probable upside, analysts plainly believe American Tower is more favorable than Sabra Health Care REIT.

Summary

American Tower beats Sabra Health Care REIT on 12 of the 17 factors compared between the two stocks.

About Sabra Health Care 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.

About American Tower

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 224,000 communications sites and a highly interconnected footprint of U.S. data center facilities.