Head to Head Review: Sabra Healthcare REIT (NASDAQ:SBRA) and Public Storage (NYSE:PSA)

Sabra Healthcare REIT (NASDAQ:SBRA) and Public Storage (NYSE:PSA) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sabra Healthcare REIT and Public Storage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Healthcare REIT	0	5	5	0	2.50
Public Storage	0	12	7	1	2.45

Sabra Healthcare REIT currently has a consensus target price of $22.30, suggesting a potential upside of 12.12%. Public Storage has a consensus target price of $316.06, suggesting a potential upside of 3.96%. Given Sabra Healthcare REIT’s stronger consensus rating and higher probable upside, equities analysts plainly believe Sabra Healthcare REIT is more favorable than Public Storage.

Profitability

This table compares Sabra Healthcare REIT and Public Storage’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%
Public Storage	39.16%	37.78%	9.43%

Dividends

Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.0%. Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 3.9%. 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. Public Storage pays out 123.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Sabra Healthcare REIT has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Public Storage has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

99.4% of Sabra Healthcare REIT shares are owned by institutional investors. Comparatively, 78.8% of Public Storage shares are owned by institutional investors. 1.1% of Sabra Healthcare REIT shares are owned by insiders. Comparatively, 11.1% of Public Storage shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sabra Healthcare REIT and Public Storage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Healthcare REIT	$774.63 million	6.48	$155.61 million	$0.63	31.57
Public Storage	$4.82 billion	11.06	$1.78 billion	$9.69	31.37

Public Storage has higher revenue and earnings than Sabra Healthcare REIT. Public Storage 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.

Summary

Public Storage beats Sabra Healthcare REIT on 12 of the 17 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 Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.