Rexford Industrial Realty (NYSE:REXR) and Universal Health Realty Income Trust (NYSE:UHT) Critical Contrast

Universal Health Realty Income Trust (NYSE:UHT) and Rexford Industrial Realty (NYSE:REXR) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Institutional & Insider Ownership

64.7% of Universal Health Realty Income Trust shares are held by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are held by institutional investors. 2.6% of Universal Health Realty Income Trust shares are held by company insiders. Comparatively, 1.8% of Rexford Industrial Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Realty Income Trust	0	1	0	0	2.00
Rexford Industrial Realty	3	6	5	0	2.14

Rexford Industrial Realty has a consensus target price of $40.62, suggesting a potential upside of 19.16%. Given Rexford Industrial Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Rexford Industrial Realty is more favorable than Universal Health Realty Income Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Health Realty Income Trust	18.00%	11.44%	3.15%
Rexford Industrial Realty	23.25%	2.64%	1.82%

Earnings and Valuation

This table compares Universal Health Realty Income Trust and Rexford Industrial Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Realty Income Trust	$99.19 million	6.01	$17.61 million	$1.28	33.57
Rexford Industrial Realty	$1.00 billion	7.67	$212.03 million	$0.93	36.65

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

Dividends

Universal Health Realty Income Trust pays an annual dividend of $3.00 per share and has a dividend yield of 7.0%. Rexford Industrial Realty pays an annual dividend of $1.74 per share and has a dividend yield of 5.1%. Universal Health Realty Income Trust pays out 234.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out 187.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust has raised its dividend for 2 consecutive years and Rexford Industrial Realty has raised its dividend for 4 consecutive years.

Volatility and Risk

Universal Health Realty Income Trust has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Summary

Rexford Industrial Realty beats Universal Health Realty Income Trust on 12 of the 17 factors compared between the two stocks.

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.

About Rexford Industrial Realty

Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.