OHI vs SBRA: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
OHI is the larger of the two ($15.97B market cap): the incumbent the market prices for continued execution (24.89x forward earnings, beta 0.57). SBRA is the smaller challenger ($5.34B), priced similarly on forward earnings (27.86x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
OHI vs SBRA: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | OHI | SBRA | What it tells you |
|---|---|---|---|
| Market cap | $15.97B | $5.34B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 24.89 | 27.86 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 18.02 | 33.60 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.57 | 0.63 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 87% of range | 71% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.90 | 1.92 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Before you buy: how OHI and SBRA affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. OHI and SBRA share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined OHI and SBRA exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Omega Healthcare Investors (OHI) do?
Omega Healthcare Investors is a real estate investment trust focused on long-term healthcare real estate, primarily skilled nursing facilities (SNFs) and assisted-living or senior-housing communities, with a portfolio spread across the United States and the United Kingdom. As a REIT, Omega does not operate the facilities itself; it owns the buildings and leases them to third-party operators under long-term, often triple-net structures where tenants cover taxes, insurance, and maintenance. It makes money by collecting contractual rent (frequently with annual escalators) and by financing operators, and by law it must distribute the large majority of its taxable income to shareholders, which is why it carries a high dividend yield.
What does Sabra Health Care REIT (SBRA) do?
Sabra Health Care REIT is a self-managed real estate investment trust that owns and invests in healthcare property, including skilled nursing and transitional care facilities, managed senior housing communities, behavioral health, and specialty hospitals, spread across the United States and Canada. Its portfolio mixes triple-net leases (where operators pay Sabra fixed rent) with managed senior housing under RIDEA-style structures that give Sabra direct exposure to the operating income of those communities, so a chunk of its results moves with occupancy and rate trends in senior living.
OHI vs SBRA: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- OHI drivers: Dividend and income focus; Aging-population demand.
- SBRA drivers: Senior housing operating recovery; Investment pipeline and acquisitions.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The dominant risk is tenant and reimbursement exposure: Omega's operators rely heavily on Medicare and Medicaid, so cuts or unfavorable changes to reimbursement, plus labor shortages and wage inflation in nursing homes, can weaken operators and their ability to pay rent. For SBRA, sabra depends heavily on the financial health of its tenant operators, and skilled nursing operators in particular run on thin margins tied to Medicare and Medicaid reimbursement, so rate changes or operator distress can pressure rent collection.
OHI or SBRA: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick OHI if you believe its drivers more; SBRA if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the OHI and SBRA guides.
OHI vs SBRA: the full fundamentals
OHI. These figures are approximate and tied to the Jul 2026 asOf date; verify live FFO, dividend, yield, and coverage numbers against Omega's latest quarterly filings before acting. For a REIT, funds from operations (FFO) and adjusted FFO matter far more than net income because they add back property depreciation, and dividend coverage (whether adjusted FFO exceeds the payout) is the single most important gauge of how sustainable the high yield is.
SBRA. Sabra reported Q1 2026 revenue of about $222 million and normalized AFFO of roughly $0.39 per share, and management raised full-year 2026 guidance to call for mid-to-high single digit FFO and AFFO per share growth over 2025. On a REIT-appropriate basis the shares trade around 13 times forward FFO, which is a discount to larger senior-housing-focused peers. The quarterly dividend of about $0.30 represents a payout near 77% of normalized AFFO, leaving some cushion.
Headline figures (approximate, Jul 2026): OHI shows business type Healthcare REIT (skilled nursing + senior housing, US and UK), adjusted ffo Recently reported around ~$0.75 to ~$0.80 per share per quarter (approximate; verify live), quarterly dividend ~$0.67 per share recently declared (verify current rate), dividend yield High relative to broad market, typical of skilled-nursing REITs; confirm live yield; SBRA shows market cap ~$5.0B, revenue (ttm) ~$880M, normalized ffo/share (2026 guide) ~$1.53-$1.55, normalized affo/share (2026 guide) ~$1.59-$1.61.
The bottom line: OHI vs SBRA
OHI and SBRA are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined OHI and SBRA exposure against your real portfolio. It is not an investment adviser.
Wondering how OHI or SBRA fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Omega Healthcare Investors with AI
Connect the broker you already use and ask Walnut's AI how OHI fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between OHI and SBRA?
+
Omega Healthcare Investors is a real estate investment trust focused on long-term healthcare real estate, primarily skilled nursing facilities (SNFs) and assisted-living or senior-housing communities, with a portfolio spread across the United States and the United Kingdom. Sabra Health Care REIT is a self-managed real estate investment trust that owns and invests in healthcare property, including skilled nursing and transitional care facilities, managed senior housing communities, behavioral health, and specialty hospitals, spread across the United States and Canada. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is OHI or SBRA the better stock?
+
Neither is universally better. OHI is the larger incumbent; SBRA is the smaller challenger and looks pricier on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, OHI or SBRA?
+
On forward P/E (as of August 2026), OHI trades at 24.89x and SBRA at 27.86x, so OHI is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both OHI and SBRA?
+
Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of OHI vs SBRA?
+
OHI: The dominant risk is tenant and reimbursement exposure: Omega's operators rely heavily on Medicare and Medicaid, so cuts or unfavorable changes to reimbursement, plus labor shortages and wage inflation in nursing homes, can weaken operators and their ability to pay rent. Operator distress is a recurring theme in skilled nursing, and a large tenant defaulting or requiring lease restructuring can directly reduce Omega's cash flow and pressure dividend coverage. As a REIT, Omega is also interest-rate sensitive: higher rates raise its borrowing costs, can weigh on the share price and yield-focused valuation, and make refinancing more expensive. Additional risks include regulatory and staffing-mandate changes for nursing facilities, geographic and tenant concentration, occupancy softness, and the general illiquidity and cyclicality of commercial real estate. The dividend, while attractive, is only as safe as the rent behind it. SBRA: Sabra depends heavily on the financial health of its tenant operators, and skilled nursing operators in particular run on thin margins tied to Medicare and Medicaid reimbursement, so rate changes or operator distress can pressure rent collection. The re-tenanting of properties (such as the Avamere-to-Cascadia transition) carries execution risk during handover. As a REIT it is sensitive to interest rates, which affect both its borrowing costs and how income investors value its yield. Leverage remains meaningful for a healthcare landlord, and the dividend, while covered by cash flow today, depends on continued occupancy recovery. Competition from far larger peers for acquisitions can compress the yields Sabra earns on new deals.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell OHI or SBRA; figures are approximate and dated (as of August 2026). Verify current data before investing.