Contrasting Universal Health Realty Income Trust (NYSE:UHT) & Getty Realty (NYSE:GTY)

Getty Realty (NYSE:GTY) and Universal Health Realty Income Trust (NYSE:UHT) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Institutional and Insider Ownership

85.1% of Getty Realty shares are held by institutional investors. Comparatively, 64.7% of Universal Health Realty Income Trust shares are held by institutional investors. 8.8% of Getty Realty shares are held by company insiders. Comparatively, 2.2% of Universal Health Realty Income Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Getty Realty pays an annual dividend of $1.88 per share and has a dividend yield of 6.6%. Universal Health Realty Income Trust pays an annual dividend of $2.96 per share and has a dividend yield of 7.0%. Getty Realty pays out 146.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust pays out 229.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Getty Realty has raised its dividend for 1 consecutive years and Universal Health Realty Income Trust has raised its dividend for 2 consecutive years. Universal Health Realty Income Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Getty Realty and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getty Realty	34.76%	7.60%	3.72%
Universal Health Realty Income Trust	18.06%	10.63%	3.13%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Getty Realty and Universal Health Realty Income Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Realty	0	3	3	0	2.50
Universal Health Realty Income Trust	0	1	0	0	2.00

Getty Realty currently has a consensus price target of $31.80, suggesting a potential upside of 11.48%. Given Getty Realty’s stronger consensus rating and higher probable upside, analysts clearly believe Getty Realty is more favorable than Universal Health Realty Income Trust.

Risk and Volatility

Getty Realty has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares Getty Realty and Universal Health Realty Income Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Realty	$203.39 million	8.10	$71.06 million	$1.28	22.29
Universal Health Realty Income Trust	$99.01 million	5.92	$19.23 million	$1.29	32.78

Getty Realty has higher revenue and earnings than Universal Health Realty Income Trust. Getty Realty is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Getty Realty beats Universal Health Realty Income Trust on 11 of the 17 factors compared between the two stocks.

About Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.