Postal Realty Trust (NYSE:PSTL) versus Sabra Healthcare REIT (NASDAQ:SBRA) Head-To-Head Comparison
by Tristan Rich · The Markets DailyPostal Realty Trust (NYSE:PSTL – Get Free Report) and Sabra Healthcare REIT (NASDAQ:SBRA – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Volatility and Risk
Postal Realty Trust has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Dividends
Postal Realty Trust pays an annual dividend of $0.98 per share and has a dividend yield of 5.2%. Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.0%. Postal Realty Trust pays out 213.0% 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 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. Postal Realty Trust has raised its dividend for 3 consecutive years. Sabra Healthcare REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Postal Realty Trust and Sabra Healthcare REIT”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Postal Realty Trust | $95.82 million | 5.43 | $14.15 million | $0.46 | 41.20 |
| Sabra Healthcare REIT | $774.63 million | 6.46 | $155.61 million | $0.64 | 31.03 |
Sabra Healthcare REIT has higher revenue and earnings than Postal Realty Trust. Sabra Healthcare REIT is trading at a lower price-to-earnings ratio than Postal Realty Trust, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for Postal Realty Trust and Sabra Healthcare REIT, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Postal Realty Trust | 0 | 2 | 4 | 0 | 2.67 |
| Sabra Healthcare REIT | 0 | 5 | 4 | 1 | 2.60 |
Postal Realty Trust presently has a consensus price target of $20.44, suggesting a potential upside of 7.84%. Sabra Healthcare REIT has a consensus price target of $22.00, suggesting a potential upside of 10.78%. Given Sabra Healthcare REIT’s higher possible upside, analysts clearly believe Sabra Healthcare REIT is more favorable than Postal Realty Trust.
Institutional and Insider Ownership
57.9% of Postal Realty Trust shares are owned by institutional investors. Comparatively, 99.4% of Sabra Healthcare REIT shares are owned by institutional investors. 13.7% of Postal Realty Trust shares are owned by insiders. Comparatively, 1.2% of Sabra Healthcare REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Postal Realty Trust and Sabra Healthcare REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Postal Realty Trust | 14.77% | 4.20% | 1.99% |
| Sabra Healthcare REIT | 20.09% | 5.63% | 2.88% |
Summary
Sabra Healthcare REIT beats Postal Realty Trust on 12 of the 17 factors compared between the two stocks.
About Postal Realty Trust
Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.
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.