Comparing Stag Industrial (NYSE:STAG) and Omega Healthcare Investors (NYSE:OHI)

Stag Industrial (NYSE:STAGGet Free Report) and Omega Healthcare Investors (NYSE:OHIGet Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Earnings and Valuation

This table compares Stag Industrial and Omega Healthcare Investors”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stag Industrial $845.18 million 8.99 $273.52 million $1.46 27.24
Omega Healthcare Investors $1.19 billion 11.62 $572.03 million $1.93 24.25

Omega Healthcare Investors has higher revenue and earnings than Stag Industrial. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.

Dividends

Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 3.9%. Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 5.7%. Stag Industrial pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors pays out 138.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial has raised its dividend for 7 consecutive years.

Profitability

This table compares Stag Industrial and Omega Healthcare Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stag Industrial 32.35% 7.68% 3.94%
Omega Healthcare Investors 49.59% 11.35% 5.77%

Risk & Volatility

Stag Industrial has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Stag Industrial and Omega Healthcare Investors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stag Industrial 1 6 3 0 2.20
Omega Healthcare Investors 1 7 6 0 2.36

Stag Industrial presently has a consensus target price of $39.50, suggesting a potential downside of 0.66%. Omega Healthcare Investors has a consensus target price of $47.83, suggesting a potential upside of 2.20%. Given Omega Healthcare Investors’ stronger consensus rating and higher possible upside, analysts plainly believe Omega Healthcare Investors is more favorable than Stag Industrial.

Insider and Institutional Ownership

88.7% of Stag Industrial shares are held by institutional investors. Comparatively, 65.3% of Omega Healthcare Investors shares are held by institutional investors. 1.1% of Stag Industrial 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Omega Healthcare Investors beats Stag Industrial on 12 of the 17 factors compared between the two stocks.

About Stag Industrial

(Get Free Report)

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.

About Omega Healthcare Investors

(Get Free Report)

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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