Healthcare Realty Trust (HR) versus Universal Health Realty Income Trust (UHT) Critical Review
Healthcare Realty Trust (NYSE: HR) and Universal Health Realty Income Trust (NYSE:UHT) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.
Insider & Institutional Ownership
91.4% of Healthcare Realty Trust shares are owned by institutional investors. Comparatively, 59.0% of Universal Health Realty Income Trust shares are owned by institutional investors. 1.9% of Healthcare Realty Trust shares are owned by company insiders. Comparatively, 1.9% of Universal Health Realty Income Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Healthcare Realty Trust and Universal Health Realty Income Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Realty Trust||1||2||6||0||2.56|
|Universal Health Realty Income Trust||0||0||0||0||N/A|
Healthcare Realty Trust presently has a consensus target price of C$33.29, indicating a potential upside of 2.01%. Given Healthcare Realty Trust’s higher probable upside, analysts plainly believe Healthcare Realty Trust is more favorable than Universal Health Realty Income Trust.
This table compares Healthcare Realty Trust and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Realty Trust||26.70%||6.62%||3.70%|
|Universal Health Realty Income Trust||61.38%||8.12%||3.32%|
Earnings and Valuation
This table compares Healthcare Realty Trust and Universal Health Realty Income Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Healthcare Realty Trust||$411.63 million||9.90||$85.57 million||C$0.97||33.64|
|Universal Health Realty Income Trust||$67.08 million||15.41||$17.21 million||$3.24||23.24|
Healthcare Realty Trust has higher revenue and earnings than Universal Health Realty Income Trust. Universal Health Realty Income Trust is trading at a lower price-to-earnings ratio than Healthcare Realty Trust, indicating that it is currently the more affordable of the two stocks.
Healthcare Realty Trust pays an annual dividend of C$1.20 per share and has a dividend yield of 3.7%. Universal Health Realty Income Trust pays an annual dividend of $2.64 per share and has a dividend yield of 3.5%. Healthcare Realty Trust pays out 123.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust pays out 81.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust has raised its dividend for 31 consecutive years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Healthcare Realty Trust has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
About Healthcare Realty Trust
Healthcare Realty Trust Incorporated is a self-managed and self-administered real estate investment trust. The Company owns, leases, manages, acquires, finances, develops and redevelops real estate properties associated primarily with the delivery of outpatient healthcare services across the United States. The Company provided property management services for 146 healthcare-related properties across the nation, totaling approximately 10.3 million square feet, as of December 31, 2016. As of December 31, 2016, the Company’s 202 owned real estate properties were located in 27 states and totaled approximately 14.6 million square feet. The Company’s medical office/outpatient facilities are located in various states of the United States, such as Alabama, Arizona, California, Colorado, District of Columbia, Florida, Hawaii, Illinois, Indiana, Iowa, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee, Texas, Virginia and Washington.
About Universal Health Realty Income Trust
Universal Health Realty Income Trust is a real estate investment trust (REIT). The Company invests in healthcare and human service related facilities, including acute care hospitals, rehabilitation hospitals, sub-acute facilities, surgery centers, free-standing emergency departments, childcare centers and medical office buildings (MOBs). As of February 28, 2017, the Company had 67 real estate investments located in 20 states in the United States consisting of six hospital facilities, including three acute care, one rehabilitation and two sub-acute; 54 MOBs; three free-standing emergency departments (FEDs), and four preschool and childcare centers. The Company’s facilities include Southwest Healthcare System, Inland Valley Campus, Wellington Regional Medical Center, Kindred Hospital Chicago Central, Vibra Hospital of Corpus Christi, Chesterbrook Academy, and Desert Valley Medical Center.
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