Arbor Realty Trust (NYSE:ABR – Get Free Report) and Healthpeak Properties (NYSE:DOC – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Volatility & Risk
Arbor Realty Trust has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Healthpeak Properties has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Insider and Institutional Ownership
57.3% of Arbor Realty Trust shares are held by institutional investors. Comparatively, 93.6% of Healthpeak Properties shares are held by institutional investors. 3.4% of Arbor Realty Trust shares are held by company insiders. Comparatively, 0.3% of Healthpeak Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Dividends
Profitability
This table compares Arbor Realty Trust and Healthpeak Properties’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Arbor Realty Trust | 27.90% | 18.12% | 2.89% |
Healthpeak Properties | 13.97% | 4.34% | 1.95% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Arbor Realty Trust and Healthpeak Properties, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Arbor Realty Trust | 2 | 2 | 2 | 0 | 2.00 |
Healthpeak Properties | 0 | 5 | 4 | 0 | 2.44 |
Arbor Realty Trust currently has a consensus target price of $14.71, indicating a potential upside of 17.76%. Healthpeak Properties has a consensus target price of $17.67, indicating a potential downside of 1.91%. Given Arbor Realty Trust’s higher possible upside, equities research analysts clearly believe Arbor Realty Trust is more favorable than Healthpeak Properties.
Earnings and Valuation
This table compares Arbor Realty Trust and Healthpeak Properties’ revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Arbor Realty Trust | $1.33 billion | 1.77 | $371.43 million | $1.76 | 7.10 |
Healthpeak Properties | $2.18 billion | 5.86 | $306.01 million | $0.56 | 32.16 |
Arbor Realty Trust has higher earnings, but lower revenue than Healthpeak Properties. Arbor Realty Trust is trading at a lower price-to-earnings ratio than Healthpeak Properties, indicating that it is currently the more affordable of the two stocks.
Summary
Arbor Realty Trust beats Healthpeak Properties on 11 of the 17 factors compared between the two stocks.
About Arbor Realty Trust
Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.
About Healthpeak Properties
Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.
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