Comparing Omega Healthcare Investors (NYSE:OHI) & Terreno Realty (NYSE:TRNO)

Terreno Realty (NYSE:TRNO) and Omega Healthcare Investors (NYSE:OHI) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Terreno Realty and Omega Healthcare Investors”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terreno Realty	$382.62 million	15.36	$184.50 million	$1.99	28.59
Omega Healthcare Investors	$1.08 billion	10.44	$406.33 million	$1.61	24.30

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

Dividends

Terreno Realty pays an annual dividend of $1.96 per share and has a dividend yield of 3.4%. Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 6.9%. Terreno Realty pays out 98.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors pays out 166.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty has raised its dividend for 5 consecutive years.

Insider & Institutional Ownership

65.3% of Omega Healthcare Investors shares are owned by institutional investors. 2.0% of Terreno Realty shares are owned by company insiders. Comparatively, 1.5% of Omega Healthcare Investors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	48.14%	5.37%	4.20%
Omega Healthcare Investors	41.29%	9.98%	4.71%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Terreno Realty and Omega Healthcare Investors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	1	8	2	0	2.09
Omega Healthcare Investors	0	5	4	0	2.44

Terreno Realty presently has a consensus target price of $65.90, suggesting a potential upside of 15.85%. Omega Healthcare Investors has a consensus target price of $42.25, suggesting a potential upside of 8.00%. Given Terreno Realty’s higher possible upside, equities analysts clearly believe Terreno Realty is more favorable than Omega Healthcare Investors.

Volatility and Risk

Terreno Realty has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Summary

Terreno Realty beats Omega Healthcare Investors on 9 of the 17 factors compared between the two stocks.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.

About Omega Healthcare Investors

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.