Head-To-Head Survey: Healthcare Realty Trust (NYSE:HR) versus Omega Healthcare Investors (NYSE:OHI)

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

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.5%. Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 4.9%. 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. Healthcare Realty Trust pays out -685.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

65.2% of Omega Healthcare Investors shares are owned by institutional investors. 1.7% of Omega Healthcare Investors shares are owned by company insiders. Comparatively, 0.6% of Healthcare Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

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

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

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.

Volatility and Risk

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

Profitability

This table compares Omega Healthcare Investors and Healthcare Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	58.11%	13.82%	7.54%
Healthcare Realty Trust	-3.96%	-1.02%	-0.49%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Omega Healthcare Investors and Healthcare Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	7	0	2.31
Healthcare Realty Trust	0	7	5	0	2.42

Omega Healthcare Investors presently has a consensus target price of $49.93, suggesting a potential upside of 1.53%. Healthcare Realty Trust has a consensus target price of $21.36, suggesting a potential upside of 9.63%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Healthcare Realty Trust is more favorable than Omega Healthcare Investors.

Summary

Omega Healthcare Investors beats Healthcare Realty Trust on 12 of the 16 factors compared between the two stocks.

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.

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.