Head-To-Head Contrast: Healthcare Realty Trust (NYSE:HR) and Rithm Capital (NYSE:RITM)

Rithm Capital (NYSE:RITM) and Healthcare Realty Trust (NYSE:HR) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Earnings & Valuation

This table compares Rithm Capital and Healthcare Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Capital	$2.29 billion	2.46	$622.26 million	$0.99	10.94
Healthcare Realty Trust	$1.34 billion	4.47	-$278.26 million	($1.58)	-10.73

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

Dividends

Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.2%. Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.3%. Rithm Capital pays out 101.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust pays out -78.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Rithm Capital and Healthcare Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Capital	0	1	7	0	2.88
Healthcare Realty Trust	1	5	0	0	1.83

Rithm Capital presently has a consensus price target of $12.94, suggesting a potential upside of 19.46%. Healthcare Realty Trust has a consensus price target of $17.50, suggesting a potential upside of 3.24%. Given Rithm Capital’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Rithm Capital is more favorable than Healthcare Realty Trust.

Profitability

This table compares Rithm Capital and Healthcare Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rithm Capital	14.99%	17.54%	2.50%
Healthcare Realty Trust	-45.63%	-9.42%	-4.90%

Insider & Institutional Ownership

44.9% of Rithm Capital shares are held by institutional investors. 0.4% of Rithm Capital shares are held by company insiders. Comparatively, 0.6% of Healthcare Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Rithm Capital has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Summary

Rithm Capital beats Healthcare Realty Trust on 13 of the 16 factors compared between the two stocks.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.

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.