Contrasting Universal Health Realty Income Trust (NYSE:UHT) & American Healthcare REIT (NYSE:AHR)

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

Earnings & Valuation

This table compares American Healthcare REIT and Universal Health Realty Income Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Healthcare REIT	$2.26 billion	4.64	$69.81 million	$0.58	93.76
Universal Health Realty Income Trust	$99.19 million	6.19	$17.61 million	$1.28	34.58

American Healthcare REIT 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 American Healthcare REIT, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

American Healthcare REIT has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Healthcare REIT	4.23%	3.33%	1.98%
Universal Health Realty Income Trust	18.00%	11.44%	3.15%

Dividends

American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Universal Health Realty Income Trust pays an annual dividend of $3.00 per share and has a dividend yield of 6.8%. American Healthcare REIT pays out 172.4% 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 pays out 234.4% 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 increased its dividend for 2 consecutive years. Universal Health Realty Income Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Healthcare REIT	0	2	11	1	2.93
Universal Health Realty Income Trust	0	1	0	0	2.00

American Healthcare REIT currently has a consensus price target of $56.00, indicating a potential upside of 2.98%. Given American Healthcare REIT’s stronger consensus rating and higher probable upside, research analysts clearly believe American Healthcare REIT is more favorable than Universal Health Realty Income Trust.

Insider and Institutional Ownership

16.7% of American Healthcare REIT shares are held by institutional investors. Comparatively, 64.7% of Universal Health Realty Income Trust shares are held by institutional investors. 0.7% of American Healthcare REIT shares are held by company insiders. Comparatively, 2.6% of Universal Health Realty Income Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Universal Health Realty Income Trust beats American Healthcare REIT on 10 of the 18 factors compared between the two stocks.

About American Healthcare REIT

Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.