Reviewing Public Storage (NYSE:PSA) & Sabra Healthcare REIT (NASDAQ:SBRA)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Public Storage	$4.82 billion	10.87	$1.78 billion	$9.69	30.83
Sabra Healthcare REIT	$774.63 million	6.05	$155.61 million	$0.63	29.48

Public Storage has higher revenue and earnings than Sabra Healthcare REIT. Sabra Healthcare REIT is trading at a lower price-to-earnings ratio than Public Storage, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Public Storage and Sabra Healthcare REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Public Storage	0	12	7	1	2.45
Sabra Healthcare REIT	0	5	5	0	2.50

Public Storage presently has a consensus target price of $316.06, suggesting a potential upside of 5.79%. Sabra Healthcare REIT has a consensus target price of $22.40, suggesting a potential upside of 20.62%. Given Sabra Healthcare REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Sabra Healthcare REIT is more favorable than Public Storage.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Public Storage	39.16%	37.78%	9.43%
Sabra Healthcare REIT	19.22%	5.60%	2.84%

Dividends

Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 4.0%. Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.5%. Public Storage pays out 123.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Risk & Volatility

Public Storage has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Insider and Institutional Ownership

78.8% of Public Storage shares are owned by institutional investors. Comparatively, 99.4% of Sabra Healthcare REIT shares are owned by institutional investors. 11.1% of Public Storage shares are owned by company insiders. Comparatively, 1.1% of Sabra Healthcare REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Public Storage beats Sabra Healthcare REIT on 13 of the 17 factors compared between the two stocks.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.

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.