Critical Analysis: Diversified Healthcare Trust (NASDAQ:DHCNL) and Sabra Healthcare REIT (NASDAQ:SBRA)

Sabra Healthcare REIT (NASDAQ:SBRA) and Diversified Healthcare Trust (NASDAQ:DHCNL) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabra Healthcare REIT	7.61%	2.34%	1.18%
Diversified Healthcare Trust	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Sabra Healthcare REIT and Diversified Healthcare Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Healthcare REIT	0	6	7	0	2.54
Diversified Healthcare Trust	0	0	0	0	0.00

Sabra Healthcare REIT presently has a consensus target price of $22.27, suggesting a potential upside of 6.98%. Given Sabra Healthcare REIT’s stronger consensus rating and higher possible upside, research analysts plainly believe Sabra Healthcare REIT is more favorable than Diversified Healthcare Trust.

Earnings and Valuation

This table compares Sabra Healthcare REIT and Diversified Healthcare Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Healthcare REIT	$774.63 million	6.87	$155.61 million	$0.26	80.08
Diversified Healthcare Trust	N/A	N/A	N/A	N/A	N/A

Sabra Healthcare REIT has higher revenue and earnings than Diversified Healthcare Trust.

Summary

Sabra Healthcare REIT beats Diversified Healthcare Trust on 9 of the 9 factors compared between the two stocks.

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.