Contrasting Alexander & Baldwin (NYSE:ALEX) and Sabra Health Care REIT (NASDAQ:SBRA)

Alexander & Baldwin (NYSE:ALEX) and Sabra Health Care REIT (NASDAQ:SBRA) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Dividends

Alexander & Baldwin pays an annual dividend of $0.90 per share and has a dividend yield of 5.1%. Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.7%. Alexander & Baldwin pays out 105.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sabra Health Care REIT pays out 203.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander & Baldwin has increased its dividend for 4 consecutive years.

Volatility & Risk

Alexander & Baldwin has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Sabra Health Care REIT has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Profitability

This table compares Alexander & Baldwin and Sabra Health Care REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexander & Baldwin	19.64%	5.93%	3.62%
Sabra Health Care REIT	18.02%	4.60%	2.37%

Valuation & Earnings

This table compares Alexander & Baldwin and Sabra Health Care REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander & Baldwin	$229.18 million	5.61	$29.80 million	$0.85	20.82
Sabra Health Care REIT	$720.03 million	5.91	$13.76 million	$0.59	30.29

Alexander & Baldwin has higher earnings, but lower revenue than Sabra Health Care REIT. Alexander & Baldwin 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.

Analyst Recommendations

This is a summary of current recommendations for Alexander & Baldwin and Sabra Health Care REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander & Baldwin	0	1	2	0	2.67
Sabra Health Care REIT	0	3	3	1	2.71

Alexander & Baldwin currently has a consensus price target of $23.00, suggesting a potential upside of 29.98%. Sabra Health Care REIT has a consensus price target of $19.50, suggesting a potential upside of 9.12%. Given Alexander & Baldwin’s higher probable upside, analysts plainly believe Alexander & Baldwin is more favorable than Sabra Health Care REIT.

Institutional and Insider Ownership

91.3% of Alexander & Baldwin shares are owned by institutional investors. Comparatively, 99.4% of Sabra Health Care REIT shares are owned by institutional investors. 0.7% of Alexander & Baldwin shares are owned by company insiders. Comparatively, 1.2% of Sabra Health Care REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

About Alexander & Baldwin

Alexander & Baldwin, Inc. engages in the real estate business. It operates through the Commercial Real Estate and Land Operations segments. The Commercial Real Estate segment includes investments and acquisitions, construction and development, and in-house leasing and property management. The Land Operations segment consists of legacy landholdings, assets, and liabilities subject to the company’s simplification and monetization effort. The company was founded by Samuel Thomas Alexander and Henry Perrine Baldwin in 1870 and is headquartered in Honolulu, HI.

About Sabra Health Care 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.