Comparing Universal Health Realty Income Trust (NYSE:UHT) & Franklin Street Properties (NYSE:FSP)

Universal Health Realty Income Trust (NYSE:UHT) and Franklin Street Properties (NYSE:FSP) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Valuation and Earnings

This table compares Universal Health Realty Income Trust and Franklin Street Properties’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Realty Income Trust	$95.57 million	5.54	$15.40 million	$1.17	32.75
Franklin Street Properties	$145.71 million	1.15	-$48.11 million	($0.56)	-2.89

Universal Health Realty Income Trust has higher earnings, but lower revenue than Franklin Street Properties. Franklin Street Properties is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Universal Health Realty Income Trust has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Franklin Street Properties has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Dividends

Universal Health Realty Income Trust pays an annual dividend of $2.92 per share and has a dividend yield of 7.6%. Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 2.5%. Universal Health Realty Income Trust pays out 249.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin Street Properties pays out -7.1% of its earnings in the form of a dividend.

Profitability

This table compares Universal Health Realty Income Trust and Franklin Street Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Realty Income Trust	16.66%	7.88%	2.70%
Franklin Street Properties	-41.73%	-8.05%	-5.09%

Analyst Ratings

This is a summary of current ratings and recommmendations for Universal Health Realty Income Trust and Franklin Street Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Realty Income Trust	0	0	0	0	N/A
Franklin Street Properties	0	0	0	0	N/A

Insider and Institutional Ownership

64.7% of Universal Health Realty Income Trust shares are owned by institutional investors. Comparatively, 61.4% of Franklin Street Properties shares are owned by institutional investors. 2.2% of Universal Health Realty Income Trust shares are owned by company insiders. Comparatively, 6.2% of Franklin Street Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Universal Health Realty Income Trust beats Franklin Street Properties on 9 of the 13 factors compared between the two stocks.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.