American Healthcare REIT (NYSE:AHR – Get Free Report) and Alexander & Baldwin (NYSE:ALEX – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.
Profitability
This table compares American Healthcare REIT and Alexander & Baldwin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Healthcare REIT | -1.84% | -1.87% | -0.80% |
| Alexander & Baldwin | 19.64% | 5.93% | 3.62% |
Earnings & Valuation
This table compares American Healthcare REIT and Alexander & Baldwin”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Healthcare REIT | $1.87 billion | 2.33 | -$71.47 million | ($0.48) | -59.31 |
| Alexander & Baldwin | $227.09 million | 6.03 | $29.80 million | $0.62 | 30.42 |
Dividends
American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Alexander & Baldwin pays an annual dividend of $0.89 per share and has a dividend yield of 4.7%. American Healthcare REIT pays out -208.3% of its earnings in the form of a dividend. Alexander & Baldwin pays out 143.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
16.7% of American Healthcare REIT shares are held by institutional investors. Comparatively, 91.3% of Alexander & Baldwin shares are held by institutional investors. 1.0% of American Healthcare REIT shares are held by insiders. Comparatively, 0.7% of Alexander & Baldwin shares are held 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.
Analyst Recommendations
This is a summary of recent ratings for American Healthcare REIT and Alexander & Baldwin, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Healthcare REIT | 0 | 1 | 7 | 0 | 2.88 |
| Alexander & Baldwin | 0 | 0 | 2 | 0 | 3.00 |
American Healthcare REIT currently has a consensus target price of $25.13, suggesting a potential downside of 11.75%. Alexander & Baldwin has a consensus target price of $22.50, suggesting a potential upside of 19.30%. Given Alexander & Baldwin’s stronger consensus rating and higher probable upside, analysts clearly believe Alexander & Baldwin is more favorable than American Healthcare REIT.
Summary
Alexander & Baldwin beats American Healthcare REIT on 11 of the 15 factors compared between the two stocks.
About American Healthcare REIT
Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.
About Alexander & Baldwin
Alexander & Baldwin, Inc. (NYSE: ALEX) (A&B) is the only publicly-traded real estate investment trust to focus exclusively on Hawai’i commercial real estate and is the state’s largest owner of grocery-anchored, neighborhood shopping centers. A&B owns, operates and manages approximately 3.9 million square feet of commercial space in Hawai’i, including 22 retail centers, 13 industrial assets and four office properties, as well as 142.0 acres of ground lease assets. A&B is expanding and strengthening its CRE portfolio and achieving its strategic focus on commercial real estate in Hawai’i. Over its 154-year history, A&B has evolved with the state’s economy and played a leadership role in the development of the agricultural, transportation, tourism, construction, residential and commercial real estate industries.
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