Analyzing HG (OTCMKTS:STLY) and National Health Investors (NYSE:NHI)

National Health Investors (NYSE:NHI) and HG (OTCMKTS:STLY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Insider and Institutional Ownership

62.5% of National Health Investors shares are owned by institutional investors. Comparatively, 1.7% of HG shares are owned by institutional investors. 2.7% of National Health Investors shares are owned by insiders. Comparatively, 75.0% of HG shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares National Health Investors and HG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Health Investors	$375.63 million	9.55	$142.18 million	$3.02	24.50
HG	$14.74 million	1.58	$1.53 million	$0.35	13.14

National Health Investors has higher revenue and earnings than HG. HG is trading at a lower price-to-earnings ratio than National Health Investors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares National Health Investors and HG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Health Investors	36.86%	9.82%	5.35%
HG	10.38%	3.91%	2.97%

Risk & Volatility

National Health Investors has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, HG has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for National Health Investors and HG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Health Investors	0	2	4	1	2.86
HG	0	0	0	0	0.00

National Health Investors presently has a consensus target price of $87.50, indicating a potential upside of 18.24%. Given National Health Investors’ stronger consensus rating and higher possible upside, equities analysts plainly believe National Health Investors is more favorable than HG.

Summary

National Health Investors beats HG on 14 of the 15 factors compared between the two stocks.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.