Sabra Health Care REIT (NASDAQ:SBRA – Get Free Report) and American Tower (NYSE:AMT – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Dividends
Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 7.2%. 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.
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% |
Volatility and Risk
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Sabra Health Care REIT and American Tower, as reported by MarketBeat.com.
| 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, indicating a potential upside of 12.85%. American Tower has a consensus target price of $226.23, indicating a potential upside of 22.34%. Given American Tower’s stronger consensus rating and higher probable upside, analysts plainly believe American Tower is more favorable than Sabra Health Care REIT.
Insider and Institutional 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, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Sabra Health Care REIT and American Tower”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sabra Health Care REIT | $684.29 million | 5.78 | $13.76 million | $0.41 | 40.76 |
| American Tower | $11.14 billion | 7.75 | $1.48 billion | $2.37 | 78.02 |
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.
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.
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