Sabra Health Care REIT (NASDAQ:SBRA) & Net Lease Office Properties (NYSE:NLOP) Financial Survey

Sabra Health Care REIT (NASDAQ:SBRA) and Net Lease Office Properties (NYSE:NLOP) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sabra Health Care REIT and Net Lease Office Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Health Care REIT	0	3	3	1	2.71
Net Lease Office Properties	0	0	1	0	3.00

Sabra Health Care REIT presently has a consensus price target of $19.33, suggesting a potential upside of 8.31%. Net Lease Office Properties has a consensus price target of $46.00, suggesting a potential upside of 52.22%. Given Net Lease Office Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Net Lease Office Properties is more favorable than Sabra Health Care REIT.

Valuation and Earnings

This table compares Sabra Health Care REIT and Net Lease Office Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Health Care REIT	$703.24 million	6.04	$13.76 million	$0.53	33.68
Net Lease Office Properties	$142.25 million	3.15	-$131.75 million	($6.19)	-4.88

Sabra Health Care REIT has higher revenue and earnings than Net Lease Office Properties. Net Lease Office Properties 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.

Dividends

Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.7%. Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 1.1%. Sabra Health Care REIT pays out 226.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Net Lease Office Properties pays out -5.5% of its earnings in the form of a dividend.

Risk and Volatility

Sabra Health Care REIT has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Net Lease Office Properties has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Profitability

This table compares Sabra Health Care REIT and Net Lease Office Properties’ 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%
Net Lease Office Properties	-122.90%	-30.16%	-17.58%

Insider and Institutional Ownership

99.4% of Sabra Health Care REIT shares are owned by institutional investors. Comparatively, 58.3% of Net Lease Office Properties 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Sabra Health Care REIT beats Net Lease Office Properties on 13 of the 17 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 Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.