American Healthcare REIT (NYSE:AHR – Get Free Report) and Seritage Growth Properties (NYSE:SRG – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
16.7% of American Healthcare REIT shares are held by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are held by institutional investors. 0.8% of American Healthcare REIT shares are held by company insiders. Comparatively, 0.6% of Seritage Growth Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for American Healthcare REIT and Seritage Growth Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Healthcare REIT | 0 | 2 | 10 | 1 | 2.92 |
| Seritage Growth Properties | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares American Healthcare REIT and Seritage Growth Properties”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Healthcare REIT | $2.26 billion | 4.18 | $69.81 million | $0.58 | 84.59 |
| Seritage Growth Properties | $15.66 million | 9.36 | -$68.21 million | ($1.44) | -1.81 |
American Healthcare REIT has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than American Healthcare REIT, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
American Healthcare REIT has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.24, indicating that its stock price is 124% more volatile than the S&P 500.
Dividends
American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. Seritage Growth Properties pays an annual dividend of $1.00 per share and has a dividend yield of 38.4%. American Healthcare REIT pays out 172.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Seritage Growth Properties pays out -69.4% of its earnings in the form of a dividend. Seritage Growth Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares American Healthcare REIT and Seritage Growth Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Healthcare REIT | 4.23% | 3.33% | 1.98% |
| Seritage Growth Properties | -487.58% | -23.03% | -16.16% |
Summary
American Healthcare REIT beats Seritage Growth Properties on 12 of the 17 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 Seritage Growth Properties
Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.
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