Whitestone REIT (NYSE:WSR – Get Free Report) and American Healthcare REIT (NYSE:AHR – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.
Profitability
This table compares Whitestone REIT and American Healthcare REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Whitestone REIT | 13.97% | 4.98% | 1.88% |
| American Healthcare REIT | -1.84% | -1.87% | -0.80% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Whitestone REIT and American Healthcare REIT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Whitestone REIT | 0 | 0 | 2 | 0 | 3.00 |
| American Healthcare REIT | 0 | 0 | 8 | 0 | 3.00 |
Volatility and Risk
Whitestone REIT has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, American Healthcare REIT has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
Valuation & Earnings
This table compares Whitestone REIT and American Healthcare REIT”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Whitestone REIT | $156.07 million | 4.00 | $19.18 million | $0.60 | 20.45 |
| American Healthcare REIT | $2.11 billion | 2.68 | -$71.47 million | ($0.27) | -131.53 |
Whitestone REIT has higher earnings, but lower revenue than American Healthcare REIT. American Healthcare REIT is trading at a lower price-to-earnings ratio than Whitestone REIT, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
69.5% of Whitestone REIT shares are held by institutional investors. Comparatively, 16.7% of American Healthcare REIT shares are held by institutional investors. 3.2% of Whitestone REIT shares are held by company insiders. Comparatively, 0.9% of American Healthcare REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
Whitestone REIT pays an annual dividend of $0.54 per share and has a dividend yield of 4.4%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Whitestone REIT pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Healthcare REIT pays out -370.4% of its earnings in the form of a dividend. Whitestone REIT has raised its dividend for 5 consecutive years. Whitestone REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Whitestone REIT beats American Healthcare REIT on 12 of the 16 factors compared between the two stocks.
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio. Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy.
About American Healthcare REIT
Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.
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