Omega Healthcare Investors (OHI) & Healthcare Realty Trust (HR) Head to Head Comparison
Omega Healthcare Investors (NYSE: OHI) and Healthcare Realty Trust (NYSE:HR) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Valuation and Earnings
This table compares Omega Healthcare Investors and Healthcare Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Omega Healthcare Investors||$926.66 million||6.73||$853.50 million||$1.89||16.73|
|Healthcare Realty Trust||$418.53 million||9.64||$236.35 million||$1.05||31.03|
Omega Healthcare Investors has higher revenue and earnings than Healthcare Realty Trust. Omega Healthcare Investors 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.
Insider & Institutional Ownership
72.8% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 92.2% of Healthcare Realty Trust shares are owned by institutional investors. 1.5% of Omega Healthcare Investors shares are owned by company insiders. Comparatively, 1.9% of Healthcare Realty Trust shares are owned 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.
This table compares Omega Healthcare Investors and Healthcare Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Omega Healthcare Investors||40.20%||8.88%||4.17%|
|Healthcare Realty Trust||28.98%||7.38%||4.04%|
Volatility & Risk
Omega Healthcare Investors has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Omega Healthcare Investors and Healthcare Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Omega Healthcare Investors||0||2||0||0||2.00|
|Healthcare Realty Trust||1||3||5||0||2.44|
Omega Healthcare Investors presently has a consensus price target of $31.50, suggesting a potential downside of 0.38%. Healthcare Realty Trust has a consensus price target of $33.00, suggesting a potential upside of 1.29%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Healthcare Realty Trust is more favorable than Omega Healthcare Investors.
Omega Healthcare Investors pays an annual dividend of $2.56 per share and has a dividend yield of 8.1%. Healthcare Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Omega Healthcare Investors pays out 135.5% 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 pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors has raised its dividend for 7 consecutive years. Omega Healthcare Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Omega Healthcare Investors beats Healthcare Realty Trust on 9 of the 17 factors compared between the two stocks.
Omega Healthcare Investors Company Profile
Omega Healthcare Investors, Inc. is a self-administered real estate investment trust (REIT). The Company maintains a portfolio of long-term healthcare facilities and mortgages on healthcare facilities located in the United States and the United Kingdom. It operates through the segment, which consists of investments in healthcare-related real estate properties. It provides lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs) and assisted living facilities (ALFs), independent living facilities, rehabilitation and acute care facilities. Its portfolio consists of long-term leases and mortgage agreements. As of December 31, 2016, its portfolio of investments included 996 healthcare facilities located in 42 states and the United Kingdom and operated by 79 third-party operators. As of December 31, 2016, the Company’s portfolio consisted of 809 SNFs, 101 ALFs, 16 specialty facilities, one medical office building, fixed rate mortgages on 44 SNFs and two ALFs.
Healthcare Realty Trust Company Profile
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.
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