American Tower (NYSE:AMT – Get Free Report) and Sabra Health Care REIT (NASDAQ:SBRA – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Profitability
This table compares American Tower and Sabra Health Care REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Tower | 10.05% | 22.01% | 3.55% |
| Sabra Health Care REIT | 14.20% | 3.51% | 1.81% |
Risk & Volatility
American Tower has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Sabra Health Care REIT has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Tower | 0 | 3 | 9 | 2 | 2.93 |
| Sabra Health Care REIT | 0 | 3 | 4 | 1 | 2.75 |
American Tower presently has a consensus target price of $226.23, suggesting a potential upside of 19.76%. Sabra Health Care REIT has a consensus target price of $18.86, suggesting a potential upside of 12.98%. Given American Tower’s stronger consensus rating and higher probable upside, equities research analysts plainly believe American Tower is more favorable than Sabra Health Care REIT.
Dividends
American Tower pays an annual dividend of $6.48 per share and has a dividend yield of 3.4%. Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 7.2%. American Tower pays out 273.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.
Insider & Institutional Ownership
92.7% of American Tower shares are held by institutional investors. Comparatively, 99.4% of Sabra Health Care REIT shares are held by institutional investors. 0.2% of American Tower shares are held by company insiders. Comparatively, 1.1% of Sabra Health Care REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares American Tower and Sabra Health Care REIT”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Tower | $11.14 billion | 7.92 | $1.48 billion | $2.37 | 79.71 |
| Sabra Health Care REIT | $647.51 million | 6.10 | $13.76 million | $0.41 | 40.71 |
American Tower has higher revenue and earnings than Sabra Health Care REIT. Sabra Health Care REIT is trading at a lower price-to-earnings ratio than American Tower, indicating that it is currently the more affordable of the two stocks.
Summary
American Tower beats Sabra Health Care REIT on 12 of the 17 factors compared between the two stocks.
About American Tower
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 224,000 communications sites and a highly interconnected footprint of U.S. data center facilities.
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.
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