Head to Head Contrast: Sabra Healthcare REIT (NASDAQ:SBRA) vs. Terreno Realty (NYSE:TRNO)

Sabra Healthcare REIT (NASDAQ:SBRA) and Terreno Realty (NYSE:TRNO) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Earnings & Valuation

This table compares Sabra Healthcare REIT and Terreno Realty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Healthcare REIT	$812.84 million	5.81	$155.61 million	$0.63	29.73
Terreno Realty	$490.40 million	14.57	$402.99 million	$4.09	16.43

Terreno Realty has lower revenue, but higher earnings than Sabra Healthcare REIT. Terreno Realty 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

Sabra Healthcare REIT has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sabra Healthcare REIT and Terreno Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Healthcare REIT	0	5	5	0	2.50
Terreno Realty	1	2	8	1	2.75

Sabra Healthcare REIT currently has a consensus price target of $22.40, indicating a potential upside of 19.59%. Terreno Realty has a consensus price target of $69.64, indicating a potential upside of 3.62%. Given Sabra Healthcare REIT’s higher probable upside, research analysts clearly believe Sabra Healthcare REIT is more favorable than Terreno Realty.

Institutional and Insider Ownership

99.4% of Sabra Healthcare REIT shares are held by institutional investors. 1.1% of Sabra Healthcare REIT shares are held by insiders. Comparatively, 1.9% of Terreno Realty shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabra Healthcare REIT	19.22%	5.60%	2.84%
Terreno Realty	86.44%	10.35%	7.98%

Dividends

Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.4%. Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.1%. 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. Terreno Realty pays out 50.9% of its earnings in the form of a dividend. Terreno Realty has raised its dividend for 5 consecutive years.

Summary

Terreno Realty beats Sabra Healthcare REIT on 13 of the 18 factors compared between the two stocks.

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.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.