Analyzing Healthcare Realty Trust (NYSE:HR) & Omega Healthcare Investors (NYSE:OHI)

Healthcare Realty Trust (NYSE:HR) and Omega Healthcare Investors (NYSE:OHI) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

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%	13.82%	7.54%

Analyst Ratings

This is a breakdown of current ratings and target prices for Healthcare Realty Trust and Omega Healthcare Investors, as reported 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 9.63%. Omega Healthcare Investors has a consensus price target of $49.93, indicating a potential upside of 1.53%. Given Healthcare Realty Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Healthcare Realty Trust is more favorable than Omega Healthcare Investors.

Insider & Institutional 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Healthcare Realty Trust and Omega Healthcare Investors”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.11 billion	6.04	-$246.07 million	($0.14)	-139.19
Omega Healthcare Investors	$1.19 billion	12.52	$572.03 million	$2.80	17.56

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.

Dividends

Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 4.9%. Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.5%. Healthcare Realty Trust pays out -685.7% of its earnings in the form of a dividend. Omega Healthcare Investors pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Healthcare Realty Trust has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

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.