Reviewing Sabra Healthcare REIT (NASDAQ:SBRA) and Peakstone Realty Trust (NYSE:PKST)

Peakstone Realty Trust (NYSE:PKST) and Sabra Healthcare REIT (NASDAQ:SBRA) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Peakstone Realty Trust and Sabra Healthcare REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peakstone Realty Trust	1	3	0	0	1.75
Sabra Healthcare REIT	0	5	5	0	2.50

Peakstone Realty Trust currently has a consensus target price of $21.00, suggesting a potential upside of 0.89%. Sabra Healthcare REIT has a consensus target price of $21.90, suggesting a potential upside of 6.21%. Given Sabra Healthcare REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Sabra Healthcare REIT is more favorable than Peakstone Realty Trust.

Dividends

Peakstone Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 5.8%. Peakstone Realty Trust pays out -4.8% of its earnings in the form of a dividend. Sabra Healthcare REIT pays out 187.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peakstone Realty Trust has increased its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Peakstone Realty Trust and Sabra Healthcare REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peakstone Realty Trust	$105.98 million	7.30	-$307.71 million	($8.39)	-2.48
Sabra Healthcare REIT	$774.63 million	6.71	$155.61 million	$0.64	32.22

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

Volatility & Risk

Peakstone Realty Trust has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares Peakstone Realty Trust and Sabra Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peakstone Realty Trust	-189.03%	-39.44%	-16.55%
Sabra Healthcare REIT	20.09%	5.63%	2.88%

Institutional & Insider Ownership

39.0% of Peakstone Realty Trust shares are held by institutional investors. Comparatively, 99.4% of Sabra Healthcare REIT shares are held by institutional investors. 0.8% of Peakstone Realty Trust shares are held by insiders. Comparatively, 1.1% of Sabra Healthcare REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Sabra Healthcare REIT beats Peakstone Realty Trust on 13 of the 17 factors compared between the two stocks.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.

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.