Head-To-Head Review: Omega Healthcare Investors (OHI) vs. The Competition

Omega Healthcare Investors (NYSE:OHI) is one of 40 public companies in the “Healthcare REITs” industry, but how does it compare to its rivals? We will compare Omega Healthcare Investors to similar companies based on the strength of its valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Volatility & Risk

Omega Healthcare Investors has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors’ rivals have a beta of 0.85, suggesting that their average stock price is 15% less volatile than the S&P 500.

Earnings and Valuation

This table compares Omega Healthcare Investors and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Omega Healthcare Investors	$1.31 billion	$572.03 million	19.46
Omega Healthcare Investors Competitors	$1.23 billion	$1.61 million	49.23

Omega Healthcare Investors has higher revenue and earnings than its rivals. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Omega Healthcare Investors and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	7	0	2.31
Omega Healthcare Investors Competitors	419	2002	1983	84	2.39

Omega Healthcare Investors presently has a consensus price target of $49.93, suggesting a potential upside of 3.48%. As a group, “Healthcare REITs” companies have a potential upside of 9.83%. Given Omega Healthcare Investors’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Omega Healthcare Investors has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	58.11%	13.66%	7.54%
Omega Healthcare Investors Competitors	22.10%	5.48%	2.88%

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.6%. Omega Healthcare Investors pays out 109.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 4.1% and pay out 162.7% of their earnings in the form of a dividend. Omega Healthcare Investors is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

65.2% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 60.4% of shares of all “Healthcare REITs” companies are owned by institutional investors. 1.7% of Omega Healthcare Investors shares are owned by company insiders. Comparatively, 3.1% of shares of all “Healthcare REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Omega Healthcare Investors beats its rivals on 8 of the 15 factors compared.

Omega Healthcare Investors Company Profile

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.