American Healthcare REIT (NYSE:AHR – Get Free Report) and Healthcare Realty Trust (NYSE:HR – Get Free Report) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Profitability
This table compares American Healthcare REIT and Healthcare Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Healthcare REIT | -1.99% | -2.20% | -0.85% |
| Healthcare Realty Trust | -42.79% | -8.50% | -4.52% |
Earnings & Valuation
This table compares American Healthcare REIT and Healthcare Realty Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Healthcare REIT | $1.95 billion | 1.80 | -$71.47 million | N/A | N/A |
| Healthcare Realty Trust | $1.32 billion | 4.94 | -$278.26 million | ($1.33) | -12.92 |
Analyst Recommendations
This is a breakdown of current ratings and price targets for American Healthcare REIT and Healthcare Realty Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Healthcare REIT | 0 | 1 | 7 | 0 | 2.88 |
| Healthcare Realty Trust | 1 | 4 | 1 | 0 | 2.00 |
American Healthcare REIT currently has a consensus target price of $23.00, indicating a potential downside of 13.53%. Healthcare Realty Trust has a consensus target price of $17.17, indicating a potential downside of 0.08%. Given Healthcare Realty Trust’s higher possible upside, analysts clearly believe Healthcare Realty Trust is more favorable than American Healthcare REIT.
Insider & Institutional Ownership
16.7% of American Healthcare REIT shares are owned by institutional investors. 1.0% of American Healthcare REIT shares are owned by company insiders. Comparatively, 0.6% of Healthcare Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dividends
American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.2%. Healthcare Realty Trust pays out -93.2% of its earnings in the form of a dividend.
Summary
American Healthcare REIT beats Healthcare Realty Trust on 9 of the 13 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 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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