Analyzing Prologis (NYSE:PLD) & Sabra Health Care REIT (NASDAQ:SBRA)

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

Dividends

Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 8.4%. Prologis pays an annual dividend of $3.84 per share and has a dividend yield of 3.5%. Sabra Health Care REIT pays out 600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis pays out 112.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis has raised its dividend for 11 consecutive years.

Valuation and Earnings

This table compares Sabra Health Care REIT and Prologis’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Health Care REIT	$647.51 million	5.12	$13.76 million	$0.20	71.55
Prologis	$8.21 billion	12.55	$3.06 billion	$3.42	32.54

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

Profitability

This table compares Sabra Health Care REIT and Prologis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sabra Health Care REIT	7.58%	1.74%	0.91%
Prologis	38.73%	5.49%	3.43%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sabra Health Care REIT and Prologis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Health Care REIT	0	5	6	0	2.55
Prologis	0	4	11	1	2.81

Sabra Health Care REIT currently has a consensus target price of $15.71, indicating a potential upside of 9.77%. Prologis has a consensus target price of $129.76, indicating a potential upside of 16.61%. Given Prologis’ stronger consensus rating and higher probable upside, analysts clearly believe Prologis is more favorable than Sabra Health Care REIT.

Insider and Institutional Ownership

99.4% of Sabra Health Care REIT shares are held by institutional investors. Comparatively, 93.5% of Prologis shares are held by institutional investors. 1.1% of Sabra Health Care REIT shares are held by company insiders. Comparatively, 0.6% of Prologis shares are held 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.

Volatility and Risk

Sabra Health Care REIT has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Prologis has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Summary

Prologis beats Sabra Health Care REIT on 13 of the 18 factors compared between the two stocks.

About Sabra Health Care REIT

As of September 30, 2023, Sabra's investment portfolio included 377 real estate properties held for investment (consisting of (i) 240 Skilled Nursing/Transitional Care facilities, (ii) 43 senior housing communities (Senior Housing – Leased), (iii) 61 senior housing communities operated by third-party property managers pursuant to property management agreements (Senior Housing – Managed), (iv) 18 Behavioral Health facilities and (v) 15 Specialty Hospitals and Other facilities), 12 investments in loans receivable (consisting of two mortgage loans and 10 other loans), five preferred equity investments and two investments in unconsolidated joint ventures. As of September 30, 2023, Sabra's real estate properties held for investment included 37,606 beds/units, spread across the United States and Canada.

About Prologis

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.