Comparing Diversified Healthcare Trust (NASDAQ:DHC) & Manhattan Bridge Capital (NASDAQ:LOAN)

Diversified Healthcare Trust (NASDAQ:DHC) and Manhattan Bridge Capital (NASDAQ:LOAN) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Dividends

Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Manhattan Bridge Capital pays an annual dividend of $0.46 per share and has a dividend yield of 8.9%. Diversified Healthcare Trust pays out -2.9% of its earnings in the form of a dividend. Manhattan Bridge Capital pays out 92.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Diversified Healthcare Trust and Manhattan Bridge Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Healthcare Trust	0	1	1	0	2.50
Manhattan Bridge Capital	0	0	0	0	N/A

Diversified Healthcare Trust presently has a consensus price target of $6.00, suggesting a potential upside of 72.41%. Given Diversified Healthcare Trust’s higher possible upside, equities analysts plainly believe Diversified Healthcare Trust is more favorable than Manhattan Bridge Capital.

Volatility & Risk

Diversified Healthcare Trust has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500. Comparatively, Manhattan Bridge Capital has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

76.0% of Diversified Healthcare Trust shares are owned by institutional investors. Comparatively, 21.8% of Manhattan Bridge Capital shares are owned by institutional investors. 1.4% of Diversified Healthcare Trust shares are owned by insiders. Comparatively, 24.5% of Manhattan Bridge Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Diversified Healthcare Trust and Manhattan Bridge Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diversified Healthcare Trust	-24.14%	-15.36%	-6.51%
Manhattan Bridge Capital	56.72%	13.20%	7.76%

Earnings and Valuation

This table compares Diversified Healthcare Trust and Manhattan Bridge Capital’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Healthcare Trust	$1.41 billion	0.59	-$293.57 million	($1.37)	-2.54
Manhattan Bridge Capital	$9.80 million	6.02	$5.48 million	$0.50	10.32

Manhattan Bridge Capital has lower revenue, but higher earnings than Diversified Healthcare Trust. Diversified Healthcare Trust is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.

Summary

Manhattan Bridge Capital beats Diversified Healthcare Trust on 9 of the 15 factors compared between the two stocks.

About Diversified Healthcare Trust

DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2023, DHC's approximately $7.2 billion portfolio included 371 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 8.6 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA.

About Manhattan Bridge Capital

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 1989 and is headquartered in Great Neck, New York.