Weyerhaeuser (NYSE:WY) and Sabra Health Care REIT (NASDAQ:SBRA) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Dividends
Weyerhaeuser pays an annual dividend of $0.68 per share and has a dividend yield of 2.0%. Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 7.0%. Weyerhaeuser pays out 174.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sabra Health Care REIT pays out 64.5% of its earnings in the form of a dividend. Weyerhaeuser has raised its dividend for 1 consecutive years and Sabra Health Care REIT has raised its dividend for 1 consecutive years. Sabra Health Care REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Weyerhaeuser and Sabra Health Care REIT's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Weyerhaeuser | $6.55 billion | 3.86 | $-76,000,000.00 | $0.39 | 86.85 |
Sabra Health Care REIT | $661.74 million | 5.48 | $69 million | $1.86 | 9.26 |
Sabra Health Care REIT has lower revenue, but higher earnings than Weyerhaeuser. Sabra Health Care REIT is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Weyerhaeuser has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500. Comparatively, Sabra Health Care REIT has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Weyerhaeuser and Sabra Health Care REIT, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Weyerhaeuser | 0 | 3 | 5 | 0 | 2.63 |
Sabra Health Care REIT | 1 | 7 | 3 | 0 | 2.18 |
Weyerhaeuser currently has a consensus target price of $31.50, suggesting a potential downside of 7.00%. Sabra Health Care REIT has a consensus target price of $16.9167, suggesting a potential downside of 1.76%. Given Sabra Health Care REIT's higher probable upside, analysts clearly believe Sabra Health Care REIT is more favorable than Weyerhaeuser.
Profitability
This table compares Weyerhaeuser and Sabra Health Care REIT's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Weyerhaeuser | 4.67% | 3.59% | 1.78% |
Sabra Health Care REIT | 23.42% | 4.15% | 2.33% |
Institutional and Insider Ownership
77.5% of Weyerhaeuser shares are owned by institutional investors. Comparatively, 88.9% of Sabra Health Care REIT shares are owned by institutional investors. 0.3% of Weyerhaeuser shares are owned by company insiders. Comparatively, 1.1% 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 company is poised for long-term growth.
Summary
Sabra Health Care REIT beats Weyerhaeuser on 11 of the 16 factors compared between the two stocks.