Head to Head Review: Universal Health Realty Income Trust (NYSE:UHT) and One Liberty Properties (NYSE:OLP)

One Liberty Properties (NYSE:OLP) 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 businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Insider & Institutional Ownership

36.2% of One Liberty Properties shares are held by institutional investors. Comparatively, 64.7% of Universal Health Realty Income Trust shares are held by institutional investors. 25.8% of One Liberty Properties shares are held by company insiders. Comparatively, 2.4% of Universal Health Realty Income Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for One Liberty Properties and Universal Health Realty Income Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
One Liberty Properties	1	0	0	0	1.00
Universal Health Realty Income Trust	0	1	0	0	2.00

Dividends

One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 8.6%. Universal Health Realty Income Trust pays an annual dividend of $2.96 per share and has a dividend yield of 7.0%. One Liberty Properties pays out 116.9% 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. Universal Health Realty Income Trust has increased its dividend for 2 consecutive years. One Liberty Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

One Liberty Properties has a beta of 1, suggesting that its stock price has a similar volatility profile to 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.

Earnings and Valuation

This table compares One Liberty Properties and Universal Health Realty Income Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
One Liberty Properties	$90.56 million	5.02	$30.42 million	$1.54	13.64
Universal Health Realty Income Trust	$99.01 million	5.89	$19.23 million	$1.29	32.60

One Liberty Properties has higher earnings, but lower revenue than Universal Health Realty Income Trust. One Liberty Properties 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
One Liberty Properties	34.87%	10.99%	4.23%
Universal Health Realty Income Trust	18.06%	10.63%	3.13%

Summary

One Liberty Properties beats Universal Health Realty Income Trust on 9 of the 15 factors compared between the two stocks.

About One Liberty Properties

One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.

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.