Universal Health Realty Income Trust (NYSE: UHT) and Healthcare Realty Trust (NYSE:HR) are both healthcare reits companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent ratings for Universal Health Realty Income Trust and Healthcare Realty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Health Realty Income Trust 0 0 0 0 N/A
Healthcare Realty Trust 1 2 5 0 2.50

Healthcare Realty Trust has a consensus price target of $33.29, indicating a potential upside of 2.42%. Given Healthcare Realty Trust’s higher possible upside, analysts clearly believe Healthcare Realty Trust is more favorable than Universal Health Realty Income Trust.

Institutional & Insider Ownership

59.0% of Universal Health Realty Income Trust shares are held by institutional investors. Comparatively, 91.4% of Healthcare Realty Trust shares are held by institutional investors. 1.9% of Universal Health Realty Income Trust shares are held by insiders. Comparatively, 1.9% of Healthcare Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Universal Health Realty Income Trust and Healthcare Realty Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Universal Health Realty Income Trust $67.08 million 15.16 $17.21 million $3.24 22.86
Healthcare Realty Trust $411.63 million 9.86 $85.57 million $0.98 33.16

Healthcare Realty Trust has higher revenue and earnings than Universal Health Realty Income Trust. Universal Health Realty Income Trust is trading at a lower price-to-earnings ratio than Healthcare Realty Trust, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Universal Health Realty Income Trust has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Dividends

Universal Health Realty Income Trust pays an annual dividend of $2.64 per share and has a dividend yield of 3.6%. Healthcare Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Universal Health Realty Income Trust pays out 81.5% 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 Realty Trust pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust has raised its dividend for 31 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Universal Health Realty Income Trust 61.38% 8.12% 3.32%
Healthcare Realty Trust 26.70% 6.62% 3.70%

Summary

Universal Health Realty Income Trust beats Healthcare Realty Trust on 9 of the 16 factors compared between the two stocks.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust is a real estate investment trust (REIT). The Company invests in healthcare and human service related facilities, including acute care hospitals, rehabilitation hospitals, sub-acute facilities, surgery centers, free-standing emergency departments, childcare centers and medical office buildings (MOBs). As of February 28, 2017, the Company had 67 real estate investments located in 20 states in the United States consisting of six hospital facilities, including three acute care, one rehabilitation and two sub-acute; 54 MOBs; three free-standing emergency departments (FEDs), and four preschool and childcare centers. The Company’s facilities include Southwest Healthcare System, Inland Valley Campus, Wellington Regional Medical Center, Kindred Hospital Chicago Central, Vibra Hospital of Corpus Christi, Chesterbrook Academy, and Desert Valley Medical Center.

About Healthcare Realty Trust

Healthcare Realty Trust Incorporated is a self-managed and self-administered real estate investment trust. The Company owns, leases, manages, acquires, finances, develops and redevelops real estate properties associated primarily with the delivery of outpatient healthcare services across the United States. The Company provided property management services for 146 healthcare-related properties across the nation, totaling approximately 10.3 million square feet, as of December 31, 2016. As of December 31, 2016, the Company’s 202 owned real estate properties were located in 27 states and totaled approximately 14.6 million square feet. The Company’s medical office/outpatient facilities are located in various states of the United States, such as Alabama, Arizona, California, Colorado, District of Columbia, Florida, Hawaii, Illinois, Indiana, Iowa, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee, Texas, Virginia and Washington.

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