Comparing Medalist Diversified REIT (NASDAQ:MDRR) & Sabra Healthcare REIT (NASDAQ:SBRA)

Sabra Healthcare REIT (NASDAQ:SBRA) and Medalist Diversified REIT (NASDAQ:MDRR) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Healthcare REIT	$703.23 million	6.66	$126.71 million	$0.72	26.10
Medalist Diversified REIT	$9.73 million	1.41	$30,000.00	($1.81)	-6.84

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

Insider and Institutional Ownership

99.4% of Sabra Healthcare REIT shares are owned by institutional investors. Comparatively, 17.4% of Medalist Diversified REIT shares are owned by institutional investors. 1.2% of Sabra Healthcare REIT shares are owned by company insiders. Comparatively, 43.8% of Medalist Diversified 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.

Dividends

Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.4%. Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.2%. Sabra Healthcare REIT pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medalist Diversified REIT pays out -14.9% of its earnings in the form of a dividend. Medalist Diversified REIT has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Sabra Healthcare REIT and Medalist Diversified REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Healthcare REIT	0	5	4	1	2.60
Medalist Diversified REIT	1	0	0	0	1.00

Sabra Healthcare REIT currently has a consensus target price of $21.00, suggesting a potential upside of 11.76%. Given Sabra Healthcare REIT’s stronger consensus rating and higher possible upside, research analysts plainly believe Sabra Healthcare REIT is more favorable than Medalist Diversified REIT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabra Healthcare REIT	23.50%	6.38%	3.27%
Medalist Diversified REIT	-21.19%	-7.87%	-2.37%

Risk & Volatility

Sabra Healthcare REIT has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Summary

Sabra Healthcare REIT beats Medalist Diversified REIT on 15 of the 18 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.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.