Sabra Health Care REIT (NASDAQ:SBRA) & Sila Realty Trust (NYSE:SILA) Critical Survey

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

Dividends

Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 7.3%. Sila Realty Trust pays an annual dividend of $1.60 per share and has a dividend yield of 6.4%. Sabra Health Care REIT pays out 292.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings and price targets for Sabra Health Care REIT and Sila Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Health Care REIT	0	3	4	1	2.75
Sila Realty Trust	0	0	3	0	3.00

Sabra Health Care REIT currently has a consensus price target of $18.86, indicating a potential upside of 13.94%. Sila Realty Trust has a consensus price target of $28.67, indicating a potential upside of 15.32%. Given Sila Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Sila Realty Trust is more favorable than Sabra Health Care REIT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabra Health Care REIT	14.20%	3.51%	1.81%
Sila Realty Trust	12.11%	1.54%	1.09%

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares Sabra Health Care REIT and Sila Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Health Care REIT	$647.51 million	6.05	$13.76 million	$0.41	40.37
Sila Realty Trust	$189.07 million	7.23	$24.04 million	N/A	N/A

Sila Realty Trust has lower revenue, but higher earnings than Sabra Health Care REIT.

Summary

Sabra Health Care REIT beats Sila Realty Trust on 9 of the 14 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 Sila Realty Trust

Sila Realty Trust, Inc., headquartered in Tampa, Florida, is a net lease real estate investment trust with a strategic focus on investing in the large, growing, and resilient healthcare sector. The Company invests in high quality healthcare facilities along the continuum of care, which, we believe, generate predictable, durable, and growing income streams. Our portfolio comprises high quality tenants in geographically diverse facilities, which are positioned to capitalize on the dynamic delivery of healthcare to patients. As of June 30, 2024, the Company owned 137 real estate properties and two undeveloped land parcels located in 64 markets across the U.S.