Highwoods Properties (NYSE:HIW – Get Free Report) and Healthcare Realty Trust (NYSE:HR – Get Free Report) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Profitability
This table compares Highwoods Properties and Healthcare Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Highwoods Properties | 18.30% | 6.33% | 2.53% |
| Healthcare Realty Trust | -42.79% | -8.50% | -4.52% |
Analyst Ratings
This is a summary of current recommendations for Highwoods Properties and Healthcare Realty Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Highwoods Properties | 1 | 5 | 1 | 0 | 2.00 |
| Healthcare Realty Trust | 1 | 5 | 2 | 0 | 2.13 |
Earnings and Valuation
This table compares Highwoods Properties and Healthcare Realty Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Highwoods Properties | $829.97 million | 4.25 | $148.71 million | $1.22 | 27.28 |
| Healthcare Realty Trust | $1.32 billion | 5.15 | -$278.26 million | ($1.33) | -13.46 |
Highwoods Properties has higher earnings, but lower revenue than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Highwoods Properties, indicating that it is currently the more affordable of the two stocks.
Dividends
Highwoods Properties pays an annual dividend of $2.00 per share and has a dividend yield of 6.0%. Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 6.9%. Highwoods Properties pays out 163.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust pays out -93.2% of its earnings in the form of a dividend. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
96.3% of Highwoods Properties shares are held by institutional investors. 1.6% of Highwoods Properties shares are held by insiders. Comparatively, 0.6% of Healthcare Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Highwoods Properties has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Summary
Highwoods Properties beats Healthcare Realty Trust on 9 of the 16 factors compared between the two stocks.
About Highwoods Properties
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (REIT) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Highwoods is in the work-placemaking business. We believe that by creating environments and experiences where the best and brightest can achieve together what they cannot apart, we can deliver greater value to our customers, their teammates and, in turn, our stakeholders.
About Healthcare Realty Trust
Healthcare Realty (NYSE: HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The Company selectively grows its portfolio through property acquisition and development. As the first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty's portfolio includes more than 700 properties totaling over 40 million square feet concentrated in 15 growth markets.
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