Contrasting Kilroy Realty (NYSE:KRC) & Sabra Health Care REIT (NASDAQ:SBRA)

Kilroy Realty (NYSE:KRC) and Sabra Health Care REIT (NASDAQ:SBRA) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Earnings and Valuation

This table compares Kilroy Realty 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
Kilroy Realty	$1.13 billion	3.45	$210.97 million	$1.68	19.57
Sabra Health Care REIT	$720.03 million	5.91	$13.76 million	$0.59	30.29

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

Dividends

Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 6.6%. Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.7%. Kilroy Realty pays out 128.6% 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 203.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Kilroy Realty and Sabra Health Care REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kilroy Realty	18.58%	3.75%	1.86%
Sabra Health Care REIT	18.02%	4.60%	2.37%

Analyst Recommendations

This is a breakdown of recent ratings for Kilroy Realty and Sabra Health Care REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kilroy Realty	1	7	3	0	2.18
Sabra Health Care REIT	0	3	3	1	2.71

Kilroy Realty presently has a consensus price target of $38.82, suggesting a potential upside of 18.10%. Sabra Health Care REIT has a consensus price target of $19.50, suggesting a potential upside of 9.12%. Given Kilroy Realty’s higher probable upside, research analysts clearly believe Kilroy Realty is more favorable than Sabra Health Care REIT.

Institutional and Insider Ownership

94.2% of Kilroy Realty shares are held by institutional investors. Comparatively, 99.4% of Sabra Health Care REIT shares are held by institutional investors. 1.6% of Kilroy Realty shares are held by insiders. Comparatively, 1.2% of Sabra Health Care REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Kilroy Realty has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Sabra Health Care REIT has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.

About Sabra Health Care 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.