MedEquities Realty Trust (MRT) and Sabra Healthcare REIT (SBRA) Head to Head Comparison

MedEquities Realty Trust (NYSE: MRT) and Sabra Healthcare REIT (NASDAQ:SBRA) are both healthcare reits companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Earnings & Valuation

This table compares MedEquities Realty Trust and Sabra Healthcare REIT’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
MedEquities Realty Trust $49.30 million 6.98 $11.05 million $0.39 27.77
Sabra Healthcare REIT $260.53 million 13.03 $70.27 million $0.78 24.42

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

Profitability

This table compares MedEquities Realty Trust and Sabra Healthcare REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MedEquities Realty Trust 35.61% 5.88% 3.89%
Sabra Healthcare REIT 25.79% 4.86% 2.33%

Dividends

MedEquities Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 7.8%. Sabra Healthcare REIT pays an annual dividend of $2.08 per share and has a dividend yield of 10.9%. MedEquities Realty Trust pays out 215.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sabra Healthcare REIT pays out 266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

94.1% of MedEquities Realty Trust shares are held by institutional investors. Comparatively, 99.3% of Sabra Healthcare REIT shares are held by institutional investors. 2.5% of MedEquities Realty Trust shares are held by company insiders. Comparatively, 2.6% of Sabra Healthcare REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for MedEquities Realty Trust and Sabra Healthcare REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MedEquities Realty Trust 1 1 4 0 2.50
Sabra Healthcare REIT 1 4 4 0 2.33

MedEquities Realty Trust presently has a consensus price target of $13.00, suggesting a potential upside of 20.04%. Sabra Healthcare REIT has a consensus price target of $24.33, suggesting a potential upside of 27.73%. Given Sabra Healthcare REIT’s higher possible upside, analysts plainly believe Sabra Healthcare REIT is more favorable than MedEquities Realty Trust.

Summary

Sabra Healthcare REIT beats MedEquities Realty Trust on 8 of the 14 factors compared between the two stocks.

About MedEquities Realty Trust

MedEquities Realty Trust, Inc. is a real estate investment trust (REIT). The Company invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. The Company invests primarily in real estate across the acute and post-acute spectrum of care. It focuses on investing in various types of healthcare properties, including acute care hospitals; skilled nursing facilities; short-stay surgical and specialty hospitals, which focus on orthopedic, heart and other dedicated surgeries and specialty procedures; dedicated specialty hospitals, such as inpatient rehabilitation facilities, long-term acute care hospitals and facilities providing psychiatric care; physician clinics; diagnostic facilities; outpatient surgery centers, and facilities that support these services, such as medical office buildings. As of September 30, 2016, the Company’s portfolio included 24 healthcare facilities and one healthcare-related debt investment.

About Sabra Healthcare REIT

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.

Receive News & Ratings for MedEquities Realty Trust Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MedEquities Realty Trust Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply