Investors Real Estate Trust (NYSE: IRET) and Senior Housing Properties Trust (NASDAQ:SNH) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitabiliy, risk, dividends, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Investors Real Estate Trust and Senior Housing Properties Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Investors Real Estate Trust 0 2 1 0 2.33
Senior Housing Properties Trust 0 1 1 0 2.50

Investors Real Estate Trust presently has a consensus target price of $6.18, suggesting a potential downside of 0.11%. Given Investors Real Estate Trust’s higher probable upside, analysts plainly believe Investors Real Estate Trust is more favorable than Senior Housing Properties Trust.

Volatility & Risk

Investors Real Estate Trust has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Senior Housing Properties Trust has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Dividends

Investors Real Estate Trust pays an annual dividend of $0.28 per share and has a dividend yield of 4.5%. Senior Housing Properties Trust pays an annual dividend of $1.56 per share and has a dividend yield of 8.3%. Investors Real Estate Trust pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Senior Housing Properties Trust pays out 305.9% 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 & Valuation

This table compares Investors Real Estate Trust and Senior Housing Properties Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Investors Real Estate Trust $205.74 million 3.63 $99.75 million $0.26 23.81
Senior Housing Properties Trust $1.06 billion 4.22 $603.62 million $0.51 36.96

Senior Housing Properties Trust has higher revenue and earnings than Investors Real Estate Trust. Investors Real Estate Trust is trading at a lower price-to-earnings ratio than Senior Housing Properties Trust, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

52.9% of Investors Real Estate Trust shares are held by institutional investors. Comparatively, 74.3% of Senior Housing Properties Trust shares are held by institutional investors. 1.3% of Investors Real Estate Trust shares are held by insiders. Comparatively, 1.3% of Senior Housing Properties Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Investors Real Estate Trust and Senior Housing Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Investors Real Estate Trust 21.07% -2.51% -0.80%
Senior Housing Properties Trust 11.14% 3.61% 1.65%

Summary

Senior Housing Properties Trust beats Investors Real Estate Trust on 10 of the 14 factors compared between the two stocks.

About Investors Real Estate Trust

Investors Real Estate Trust is a self-advised equity real estate investment trust (REIT). The Company’s business consists of owning and operating income-producing real estate properties. Its segments include Multifamily, Healthcare and All Other. Its investments consist of multifamily and healthcare properties located primarily in the upper Midwest states of Minnesota and North Dakota. It conducts its business operations through its operating partnership, IRET Properties, which is principally engaged in acquiring, owning, operating and leasing real estate. It invests in multifamily properties and commercial properties that are leased to single or multiple tenants, usually for approximately five years or longer. As of May 26, 2017, the Company held for investment 86 multifamily properties containing 12,813 apartment units and 44 commercial properties, consisting of healthcare, industrial, office and retail, containing approximately 2.7 million square feet of leasable space.

About Senior Housing Properties Trust

Senior Housing Properties Trust is a real estate investment trust (REIT). The Company’s segments include triple net senior living communities that provide short term and long term residential care and other services for residents; managed senior living communities that provide short term and long term residential care and other services for residents; properties leased to medical providers, medical related businesses, clinics and biotech laboratory tenants (MOBs), and all other, including certain properties that offer wellness, fitness and spa services to members. Properties in triple net senior living communities segment include leased independent living communities, assisted living communities and skilled nursing facilities. Properties in managed senior living communities segment include managed independent living communities and assisted living communities.

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