Kilroy Realty (NYSE:KRC) & Sabra Health Care REIT (NASDAQ:SBRA) Head-To-Head Comparison

Sabra Health Care REIT (NASDAQ:SBRA) and Kilroy Realty (NYSE:KRC) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabra Health Care REIT	18.02%	4.60%	2.37%
Kilroy Realty	18.58%	3.75%	1.86%

Valuation and Earnings

This table compares Sabra Health Care REIT and Kilroy Realty”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	$720.03 million	5.87	$13.76 million	$0.59	30.08
Kilroy Realty	$1.13 billion	3.33	$210.97 million	$1.68	18.88

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

Insider & Institutional Ownership

99.4% of Sabra Health Care REIT shares are owned by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are owned by institutional investors. 1.2% of Sabra Health Care REIT shares are owned by insiders. Comparatively, 1.6% of Kilroy Realty shares are owned by 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.

Risk and Volatility

Sabra Health Care REIT has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Sabra Health Care REIT and Kilroy Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Health Care REIT	0	3	3	1	2.71
Kilroy Realty	1	7	3	0	2.18

Sabra Health Care REIT presently has a consensus target price of $19.50, suggesting a potential upside of 9.86%. Kilroy Realty has a consensus target price of $38.82, suggesting a potential upside of 22.38%. Given Kilroy Realty’s higher probable upside, analysts clearly believe Kilroy Realty is more favorable than Sabra Health Care REIT.

Dividends

Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.8%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 6.8%. Sabra Health Care REIT pays out 203.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kilroy Realty pays out 128.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kilroy Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kilroy Realty beats Sabra Health Care REIT on 9 of the 16 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 Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.