Healthcare Realty Trust (NYSE:HR – Get Free Report) and Omega Healthcare Investors (NYSE:OHI – Get Free Report) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.
Volatility and Risk
Healthcare Realty Trust has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Healthcare Realty Trust and Omega Healthcare Investors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Healthcare Realty Trust | 0 | 7 | 5 | 0 | 2.42 |
| Omega Healthcare Investors | 2 | 7 | 7 | 0 | 2.31 |
Healthcare Realty Trust currently has a consensus price target of $21.36, indicating a potential upside of 10.36%. Omega Healthcare Investors has a consensus price target of $50.00, indicating a potential upside of 2.44%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, equities analysts plainly believe Healthcare Realty Trust is more favorable than Omega Healthcare Investors.
Dividends
Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 5.0%. Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.6%. Healthcare Realty Trust pays out -685.7% of its earnings in the form of a dividend. Omega Healthcare Investors pays out 109.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Healthcare Realty Trust and Omega Healthcare Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Healthcare Realty Trust | -3.96% | -1.02% | -0.49% |
| Omega Healthcare Investors | 58.11% | 13.66% | 7.54% |
Institutional & Insider Ownership
65.2% of Omega Healthcare Investors shares are held by institutional investors. 0.6% of Healthcare Realty Trust shares are held by insiders. Comparatively, 1.7% of Omega Healthcare Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Healthcare Realty Trust and Omega Healthcare Investors”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Healthcare Realty Trust | $1.18 billion | 5.62 | -$246.07 million | ($0.14) | -138.27 |
| Omega Healthcare Investors | $1.19 billion | 12.43 | $572.03 million | $2.48 | 19.68 |
Omega Healthcare Investors has higher revenue and earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, indicating that it is currently the more affordable of the two stocks.
Summary
Omega Healthcare Investors beats Healthcare Realty Trust on 12 of the 16 factors compared between the two stocks.
About Healthcare Realty Trust
Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.
About Omega Healthcare Investors
Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.
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