Analyzing Sabra Healthcare REIT (NASDAQ:SBRA) & Farmland Partners (NYSE:FPI)

Farmland Partners (NYSE:FPI) and Sabra Healthcare REIT (NASDAQ:SBRA) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Farmland Partners and Sabra Healthcare REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmland Partners	0	4	0	0	2.00
Sabra Healthcare REIT	0	5	5	0	2.50

Sabra Healthcare REIT has a consensus target price of $22.40, indicating a potential upside of 21.15%. Given Sabra Healthcare REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Sabra Healthcare REIT is more favorable than Farmland Partners.

Profitability

This table compares Farmland Partners and Sabra Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmland Partners	57.94%	6.48%	4.09%
Sabra Healthcare REIT	19.22%	5.60%	2.84%

Insider & Institutional Ownership

58.0% of Farmland Partners shares are owned by institutional investors. Comparatively, 99.4% of Sabra Healthcare REIT shares are owned by institutional investors. 7.9% of Farmland Partners shares are owned by insiders. Comparatively, 1.1% of Sabra Healthcare REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Farmland Partners pays an annual dividend of $0.36 per share and has a dividend yield of 3.6%. Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.5%. Farmland Partners pays out 62.1% of its earnings in the form of a dividend. 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.

Volatility & Risk

Farmland Partners has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Valuation & Earnings

This table compares Farmland Partners and Sabra Healthcare REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmland Partners	$52.18 million	8.27	$31.55 million	$0.58	17.06
Sabra Healthcare REIT	$774.63 million	6.02	$155.61 million	$0.63	29.35

Sabra Healthcare REIT has higher revenue and earnings than Farmland Partners. Farmland Partners 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

Sabra Healthcare REIT beats Farmland Partners on 9 of the 16 factors compared between the two stocks.

About Farmland Partners

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company has approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014.

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.