Uniti Group (NASDAQ:UNIT – Get Free Report) and Omega Healthcare Investors (NYSE:OHI – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Risk & Volatility
Uniti Group has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Institutional and Insider Ownership
87.5% of Uniti Group shares are held by institutional investors. Comparatively, 65.3% of Omega Healthcare Investors shares are held by institutional investors. 2.7% of Uniti Group shares are held by company insiders. Comparatively, 1.5% of Omega Healthcare Investors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Uniti Group | 39.61% | -2.52% | -3.44% |
| Omega Healthcare Investors | 51.14% | 11.86% | 6.10% |
Valuation and Earnings
This table compares Uniti Group and Omega Healthcare Investors”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Uniti Group | $2.23 billion | 1.25 | $1.30 billion | $3.35 | 3.44 |
| Omega Healthcare Investors | $1.19 billion | 11.63 | $572.03 million | $2.07 | 22.45 |
Uniti Group has higher revenue and earnings than Omega Healthcare Investors. Uniti Group is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Uniti Group and Omega Healthcare Investors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Uniti Group | 0 | 7 | 1 | 1 | 2.33 |
| Omega Healthcare Investors | 1 | 8 | 5 | 0 | 2.29 |
Uniti Group currently has a consensus price target of $10.92, suggesting a potential downside of 5.15%. Omega Healthcare Investors has a consensus price target of $48.31, suggesting a potential upside of 3.93%. Given Omega Healthcare Investors’ higher probable upside, analysts plainly believe Omega Healthcare Investors is more favorable than Uniti Group.
Summary
Uniti Group beats Omega Healthcare Investors on 8 of the 15 factors compared between the two stocks.
About Uniti Group
Uniti Group, Inc. is a real estate investment trust company, which engages in the acquisition, construction, and leasing of properties. It operates through the following business segments: Uniti Leasing, Uniti Fiber, and Corporate. The Uniti Leasing segment involves mission-critical communications assets on exclusive or shared-tenant basis, and dark fiber network. The Uniti Fiber segment includes the operation of infrastructure solutions, cell site backhauls, and dark fiber. The Corporate segment consists of office and shared service functions. The company was founded in February 2014 and is headquartered in Little Rock, AR.
About Omega Healthcare Investors
Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.
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