American Healthcare REIT (NYSE:AHR – Get Free Report) and SL Green Realty (NYSE:SLG – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Earnings & Valuation
This table compares American Healthcare REIT and SL Green Realty”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Healthcare REIT | $2.07 billion | 3.93 | -$37.81 million | $0.14 | 344.58 |
| SL Green Realty | $910.38 million | 3.78 | $30.65 million | $0.01 | 4,830.00 |
Profitability
This table compares American Healthcare REIT and SL Green Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Healthcare REIT | 1.21% | 1.09% | 0.58% |
| SL Green Realty | 1.75% | -0.22% | -0.08% |
Dividends
American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. SL Green Realty pays an annual dividend of $3.09 per share and has a dividend yield of 6.4%. American Healthcare REIT pays out 714.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty pays out 30,900.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty has raised its dividend for 1 consecutive years. SL Green Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
American Healthcare REIT has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, SL Green Realty has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.
Institutional and Insider Ownership
16.7% of American Healthcare REIT shares are owned by institutional investors. Comparatively, 90.0% of SL Green Realty shares are owned by institutional investors. 0.9% of American Healthcare REIT shares are owned by company insiders. Comparatively, 5.0% of SL Green Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for American Healthcare REIT and SL Green Realty, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Healthcare REIT | 0 | 1 | 11 | 2 | 3.07 |
| SL Green Realty | 1 | 10 | 5 | 0 | 2.25 |
American Healthcare REIT currently has a consensus target price of $49.40, suggesting a potential upside of 2.40%. SL Green Realty has a consensus target price of $64.33, suggesting a potential upside of 33.20%. Given SL Green Realty’s higher possible upside, analysts clearly believe SL Green Realty is more favorable than American Healthcare REIT.
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.
About SL Green Realty
3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.
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