Reviewing Healthpeak Properties (NYSE:DOC) and Omega Healthcare Investors (NYSE:OHI)

Omega Healthcare Investors (NYSE:OHI) and Healthpeak Properties (NYSE:DOC) are both large-cap real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.6%. Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 6.0%. Omega Healthcare Investors pays out 109.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthpeak Properties pays out 225.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Omega Healthcare Investors and Healthpeak Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.19 billion	12.46	$572.03 million	$2.48	19.64
Healthpeak Properties	$2.82 billion	4.99	$71.35 million	$0.54	37.85

Omega Healthcare Investors has higher earnings, but lower revenue than Healthpeak Properties. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than Healthpeak Properties, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Omega Healthcare Investors has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Healthpeak Properties has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Profitability

This table compares Omega Healthcare Investors and Healthpeak Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	58.11%	13.66%	7.54%
Healthpeak Properties	12.32%	4.04%	1.76%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Omega Healthcare Investors and Healthpeak Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	7	0	2.31
Healthpeak Properties	0	14	4	0	2.22

Omega Healthcare Investors presently has a consensus price target of $50.00, indicating a potential upside of 2.64%. Healthpeak Properties has a consensus price target of $21.47, indicating a potential upside of 5.04%. Given Healthpeak Properties’ higher possible upside, analysts plainly believe Healthpeak Properties is more favorable than Omega Healthcare Investors.

Institutional and Insider Ownership

65.2% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 93.6% of Healthpeak Properties shares are held by institutional investors. 1.7% of Omega Healthcare Investors shares are held by insiders. Comparatively, 0.2% of Healthpeak Properties shares are held by 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.

Summary

Omega Healthcare Investors beats Healthpeak Properties on 11 of the 16 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. is a real estate investment trust (REIT) focused on healthcare facilities, particularly skilled nursing and assisted living properties. The company invests in these facilities through real estate leases, loans and other financing arrangements. Its portfolio serves healthcare operators in the United States and the United Kingdom. Omega primarily leases properties to third-party operators, which manage the facilities and provide care to residents. Founded in 1992 and headquartered in Hunt Valley, Maryland, Omega is led by President and Chief Executive Officer Taylor Pickett.

About Healthpeak Properties

Healthpeak Properties, Inc. is a real estate investment trust that owns and operates properties serving the healthcare and life sciences industries. Its portfolio includes outpatient medical buildings, life science facilities and senior housing communities. The company’s properties are located across the United States, with investments in major healthcare and life science markets. In 2024, Healthpeak completed its merger with Physicians Realty Trust, expanding its portfolio of outpatient medical properties.