Contrasting Omega Healthcare Investors (OHI) & Its Competitors

Omega Healthcare Investors (NYSE:OHI) is one of 40 publicly-traded companies in the “Healthcare REITs” industry, but how does it weigh in compared to its rivals? We will compare Omega Healthcare Investors to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, valuation, risk and earnings.

Insider & Institutional Ownership

65.2% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 62.9% of shares of all “Healthcare REITs” companies are held by institutional investors. 1.7% of Omega Healthcare Investors shares are held by insiders. Comparatively, 3.1% of shares of all “Healthcare REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Omega Healthcare Investors has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors’ rivals have a beta of 0.85, suggesting that their average share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Omega Healthcare Investors and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	7	0	2.31
Omega Healthcare Investors Competitors	423	2007	1993	85	2.39

Omega Healthcare Investors currently has a consensus target price of $50.00, indicating a potential upside of 2.64%. As a group, “Healthcare REITs” companies have a potential upside of 9.95%. Given Omega Healthcare Investors’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Omega Healthcare Investors has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	58.11%	13.66%	7.54%
Omega Healthcare Investors Competitors	26.19%	6.30%	3.51%

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.6%. Omega Healthcare Investors pays out 109.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 4.0% and pay out 121.7% of their earnings in the form of a dividend. Omega Healthcare Investors is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Omega Healthcare Investors and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Omega Healthcare Investors	$1.19 billion	$572.03 million	19.64
Omega Healthcare Investors Competitors	$1.28 billion	$1.61 million	-12.74

Omega Healthcare Investors’ rivals have higher revenue, but lower earnings than Omega Healthcare Investors. Omega Healthcare Investors is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Omega Healthcare Investors beats its rivals on 8 of the 15 factors compared.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. is a real estate investment trust (REIT) focused on healthcare facilities, particularly skilled nursing and assisted living properties. The company invests in these facilities through real estate leases, loans and other financing arrangements. Its portfolio serves healthcare operators in the United States and the United Kingdom. Omega primarily leases properties to third-party operators, which manage the facilities and provide care to residents. Founded in 1992 and headquartered in Hunt Valley, Maryland, Omega is led by President and Chief Executive Officer Taylor Pickett.