Head-To-Head Analysis: Healthcare Trust of America (HTA) versus Omega Healthcare Investors (OHI)
Healthcare Trust of America (NYSE: HTA) and Omega Healthcare Investors (NYSE:OHI) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
This is a summary of current ratings and target prices for Healthcare Trust of America and Omega Healthcare Investors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Trust of America||0||0||7||1||3.13|
|Omega Healthcare Investors||0||2||0||0||2.00|
Healthcare Trust of America currently has a consensus target price of $34.14, suggesting a potential upside of 9.89%. Omega Healthcare Investors has a consensus target price of $33.00, suggesting a potential upside of 1.04%. Given Healthcare Trust of America’s stronger consensus rating and higher possible upside, analysts plainly believe Healthcare Trust of America is more favorable than Omega Healthcare Investors.
Healthcare Trust of America pays an annual dividend of $1.20 per share and has a dividend yield of 3.9%. Omega Healthcare Investors pays an annual dividend of $2.56 per share and has a dividend yield of 7.8%. Healthcare Trust of America pays out 571.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors pays out 135.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Trust of America has raised its dividend for 7 consecutive years and Omega Healthcare Investors has raised its dividend for 4 consecutive years. Omega Healthcare Investors is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Healthcare Trust of America and Omega Healthcare Investors’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Healthcare Trust of America||$504.67 million||12.35||$301.67 million||$0.21||147.95|
|Omega Healthcare Investors||$926.66 million||6.95||$853.50 million||$1.89||17.28|
Omega Healthcare Investors has higher revenue and earnings than Healthcare Trust of America. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than Healthcare Trust of America, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Healthcare Trust of America has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.
This table compares Healthcare Trust of America and Omega Healthcare Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Trust of America||6.07%||1.42%||0.70%|
|Omega Healthcare Investors||40.20%||8.88%||4.17%|
Insider and Institutional Ownership
97.6% of Healthcare Trust of America shares are held by institutional investors. Comparatively, 74.6% of Omega Healthcare Investors shares are held by institutional investors. 1.5% of Healthcare Trust of America shares are held by insiders. Comparatively, 4.5% of Omega Healthcare Investors shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Omega Healthcare Investors beats Healthcare Trust of America on 10 of the 18 factors compared between the two stocks.
About Healthcare Trust of America
Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.
About Omega Healthcare Investors
Omega Healthcare Investors, Inc. is a self-administered real estate investment trust (REIT). The Company maintains a portfolio of long-term healthcare facilities and mortgages on healthcare facilities located in the United States and the United Kingdom. It operates through the segment, which consists of investments in healthcare-related real estate properties. It provides lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs) and assisted living facilities (ALFs), independent living facilities, rehabilitation and acute care facilities. Its portfolio consists of long-term leases and mortgage agreements. As of December 31, 2016, its portfolio of investments included 996 healthcare facilities located in 42 states and the United Kingdom and operated by 79 third-party operators. As of December 31, 2016, the Company’s portfolio consisted of 809 SNFs, 101 ALFs, 16 specialty facilities, one medical office building, fixed rate mortgages on 44 SNFs and two ALFs.
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