Sabra Health Care REIT (SBRA) and National Storage Affiliates Trust (NSA) Financial Review

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

Profitability

This table compares Sabra Health Care REIT and National Storage Affiliates Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sabra Health Care REIT 62.60% 11.21% 5.53%
National Storage Affiliates Trust 4.63% 1.29% 0.60%

Institutional and Insider Ownership

90.4% of Sabra Health Care REIT shares are held by institutional investors. Comparatively, 85.0% of National Storage Affiliates Trust shares are held by institutional investors. 1.1% of Sabra Health Care REIT shares are held by company insiders. Comparatively, 13.1% of National Storage Affiliates Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Sabra Health Care REIT pays an annual dividend of $1.80 per share and has a dividend yield of 8.0%. National Storage Affiliates Trust pays an annual dividend of $1.16 per share and has a dividend yield of 4.5%. Sabra Health Care REIT pays out 74.1% of its earnings in the form of a dividend. National Storage Affiliates Trust pays out 93.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sabra Health Care REIT has raised its dividend for 7 consecutive years and National Storage Affiliates Trust has raised its dividend for 2 consecutive years. Sabra Health Care REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Sabra Health Care REIT has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, National Storage Affiliates Trust has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sabra Health Care REIT and National Storage Affiliates Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sabra Health Care REIT 0 4 5 0 2.56
National Storage Affiliates Trust 0 7 3 0 2.30

Sabra Health Care REIT currently has a consensus price target of $22.50, suggesting a potential downside of 0.04%. National Storage Affiliates Trust has a consensus price target of $28.00, suggesting a potential upside of 9.76%. Given National Storage Affiliates Trust’s higher probable upside, analysts clearly believe National Storage Affiliates Trust is more favorable than Sabra Health Care REIT.

Valuation & Earnings

This table compares Sabra Health Care REIT and National Storage Affiliates Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sabra Health Care REIT $405.65 million 9.89 $158.38 million $2.43 9.26
National Storage Affiliates Trust $268.13 million 5.38 $2.96 million $1.24 20.57

Sabra Health Care REIT has higher revenue and earnings than National Storage Affiliates Trust. Sabra Health Care REIT is trading at a lower price-to-earnings ratio than National Storage Affiliates Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Sabra Health Care REIT beats National Storage Affiliates Trust on 14 of the 17 factors compared between the two stocks.

Sabra Health Care REIT Company Profile

As of June 30, 2018, Sabra's investment portfolio included 487 real estate properties held for investment (consisting of (i) 352 Skilled Nursing/Transitional Care facilities, (ii) 89 Senior Housing communities (?Senior Housing – Leased?), (iii) 24 Senior Housing communities operated by third-party property managers pursuant to property management agreements (?Senior Housing – Managed?) and (iv) 22 Specialty Hospitals and Other facilities), one asset held for sale, one investment in a direct financing lease, 22 investments in loans receivable (consisting of (i) one mortgage loan, (ii) two construction loans, (iii) one mezzanine loan, (iv) one pre-development loan and (v) 17 other loans), 13 preferred equity investments and one investment in an unconsolidated joint venture that owns 172 Senior Housing – Managed communities. As of June 30, 2018, Sabra's real estate properties held for investment included 50,030 beds/units and its unconsolidated joint venture included 7,652 beds/units, spread across the United States and Canada.

National Storage Affiliates Trust Company Profile

National Storage Affiliates Trust is a Maryland real estate investment trust focused on the ownership, operation and acquisition of self storage properties located within the top 100 metropolitan statistical areas throughout the United States. The Company currently holds ownership interests in and operates 533 self storage properties located in 29 states with approximately 33 million rentable square feet. NSA is the sixth largest owner and operator of self storage properties among public and private companies in the U.S.

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