Head to Head Contrast: Healthcare Realty Trust (HR) versus Healthcare Trust of America (HTA)
Healthcare Realty Trust (NYSE: HR) and Healthcare Trust of America (NYSE:HTA) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Institutional and Insider Ownership
90.3% of Healthcare Realty Trust shares are held by institutional investors. Comparatively, 97.9% of Healthcare Trust of America shares are held by institutional investors. 1.9% of Healthcare Realty Trust shares are held by insiders. Comparatively, 1.5% of Healthcare Trust of America 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.
Volatility and Risk
Healthcare Realty Trust has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Healthcare Trust of America has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.
Healthcare Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. Healthcare Trust of America pays an annual dividend of $1.22 per share and has a dividend yield of 4.0%. 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. Healthcare Trust of America pays out 508.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust has increased its dividend for 4 consecutive years.
This is a breakdown of current recommendations and price targets for Healthcare Realty Trust and Healthcare Trust of America, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Realty Trust||1||2||6||0||2.56|
|Healthcare Trust of America||0||3||7||1||2.82|
Healthcare Realty Trust currently has a consensus price target of $33.29, indicating a potential upside of 1.11%. Healthcare Trust of America has a consensus price target of $34.33, indicating a potential upside of 12.02%. Given Healthcare Trust of America’s stronger consensus rating and higher possible upside, analysts plainly believe Healthcare Trust of America is more favorable than Healthcare Realty Trust.
Valuation and Earnings
This table compares Healthcare Realty Trust and Healthcare Trust of America’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Healthcare Realty Trust||$411.63 million||9.99||$85.57 million||$0.97||33.94|
|Healthcare Trust of America||$460.93 million||13.62||$45.91 million||$0.24||127.71|
Healthcare Realty Trust has higher revenue, but lower earnings than Healthcare Trust of America. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Healthcare Trust of America, indicating that it is currently the more affordable of the two stocks.
This table compares Healthcare Realty Trust and Healthcare Trust of America’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%|
|Healthcare Trust of America||6.75%||1.50%||0.75%|
Healthcare Realty Trust beats Healthcare Trust of America on 10 of the 18 factors compared between the two stocks.
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.
Healthcare Trust of America Company Profile
Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.
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