Orion Office REIT (NYSE:ONL – Get Free Report) and Sabra Healthcare REIT (NASDAQ:SBRA – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Dividends
Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 2.8%. Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. Orion Office REIT pays out -3.1% of its earnings in the form of a dividend. Sabra Healthcare REIT pays out 190.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Orion Office REIT and Sabra Healthcare REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orion Office REIT | -98.36% | -21.88% | -11.79% |
| Sabra Healthcare REIT | 19.22% | 5.60% | 2.84% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orion Office REIT | $147.65 million | 1.12 | -$139.31 million | ($2.56) | -1.14 |
| Sabra Healthcare REIT | $774.63 million | 5.89 | $155.61 million | $0.63 | 28.71 |
Sabra Healthcare REIT has higher revenue and earnings than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than Sabra Healthcare REIT, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Orion Office REIT has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Orion Office REIT and Sabra Healthcare REIT, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orion Office REIT | 1 | 1 | 1 | 0 | 2.00 |
| Sabra Healthcare REIT | 0 | 5 | 5 | 0 | 2.50 |
Orion Office REIT currently has a consensus target price of $3.50, indicating a potential upside of 20.32%. Sabra Healthcare REIT has a consensus target price of $22.40, indicating a potential upside of 23.83%. Given Sabra Healthcare REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Sabra Healthcare REIT is more favorable than Orion Office REIT.
Insider & Institutional Ownership
80.0% of Orion Office REIT shares are owned by institutional investors. Comparatively, 99.4% of Sabra Healthcare REIT shares are owned by institutional investors. 1.6% of Orion Office REIT shares are owned by company insiders. Comparatively, 1.1% of Sabra Healthcare REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Sabra Healthcare REIT beats Orion Office REIT on 13 of the 16 factors compared between the two stocks.
About Orion Office REIT
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
About Sabra Healthcare 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.
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