Omega Healthcare Investors (NYSE:OHI – Get Free Report) and Stag Industrial (NYSE:STAG – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Dividends
Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 5.7%. Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 3.9%. Omega Healthcare Investors pays out 138.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial has raised its dividend for 7 consecutive years.
Analyst Recommendations
This is a summary of recent ratings and price targets for Omega Healthcare Investors and Stag Industrial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Omega Healthcare Investors | 1 | 7 | 6 | 0 | 2.36 |
| Stag Industrial | 1 | 6 | 3 | 0 | 2.20 |
Earnings & Valuation
This table compares Omega Healthcare Investors and Stag Industrial”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Omega Healthcare Investors | $1.19 billion | 11.62 | $572.03 million | $1.93 | 24.25 |
| Stag Industrial | $845.18 million | 8.99 | $273.52 million | $1.46 | 27.24 |
Omega Healthcare Investors has higher revenue and earnings than Stag Industrial. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
65.3% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 88.7% of Stag Industrial shares are held by institutional investors. 1.5% of Omega Healthcare Investors shares are held by company insiders. Comparatively, 1.1% of Stag Industrial shares are held by company 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.
Profitability
This table compares Omega Healthcare Investors and Stag Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Omega Healthcare Investors | 49.59% | 11.35% | 5.77% |
| Stag Industrial | 32.35% | 7.68% | 3.94% |
Volatility and Risk
Omega Healthcare Investors has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Summary
Omega Healthcare Investors beats Stag Industrial on 12 of the 17 factors compared between the two stocks.
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.
About Stag Industrial
STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.
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