Federal Realty Investment Trust (NYSE:FRT – Get Free Report) and Omega Healthcare Investors (NYSE:OHI – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.
Risk & Volatility
Federal Realty Investment Trust has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Institutional and Insider Ownership
93.9% of Federal Realty Investment Trust shares are owned by institutional investors. Comparatively, 65.3% of Omega Healthcare Investors shares are owned by institutional investors. 1.0% of Federal Realty Investment Trust shares are owned by company insiders. Comparatively, 1.4% of Omega Healthcare Investors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federal Realty Investment Trust | 0 | 1 | 12 | 0 | 2.92 |
| Omega Healthcare Investors | 0 | 6 | 6 | 0 | 2.50 |
Federal Realty Investment Trust currently has a consensus target price of $123.62, suggesting a potential upside of 10.45%. Omega Healthcare Investors has a consensus target price of $40.18, suggesting a potential upside of 6.22%. Given Federal Realty Investment Trust’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Federal Realty Investment Trust is more favorable than Omega Healthcare Investors.
Dividends
Federal Realty Investment Trust pays an annual dividend of $4.40 per share and has a dividend yield of 3.9%. Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 7.1%. Federal Realty Investment Trust pays out 127.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors pays out 197.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Federal Realty Investment Trust and Omega Healthcare Investors”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federal Realty Investment Trust | $1.18 billion | 7.85 | $236.99 million | $3.44 | 32.53 |
| Omega Healthcare Investors | $1.01 billion | 10.10 | $242.18 million | $1.36 | 27.82 |
Omega Healthcare Investors has lower revenue, but higher earnings than Federal Realty Investment Trust. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than Federal Realty Investment Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Federal Realty Investment Trust and Omega Healthcare Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Federal Realty Investment Trust | 24.67% | 10.01% | 3.47% |
| Omega Healthcare Investors | 34.41% | 8.83% | 3.81% |
Summary
Federal Realty Investment Trust beats Omega Healthcare Investors on 10 of the 16 factors compared between the two stocks.
About Federal Realty Investment Trust
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 102 properties include approximately 3,300 tenants, in 26 million commercial square feet, and approximately 3,100 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 56 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.
About Omega Healthcare Investors
Omega is a REIT that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the U.S., as well as in the U.K.
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