Diversified Healthcare Trust (NASDAQ:DHCNL) vs. National Health Investors (NYSE:NHI) Critical Contrast

National Health Investors (NYSE:NHI) and Diversified Healthcare Trust (NASDAQ:DHCNL) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

62.5% of National Health Investors shares are owned by institutional investors. 2.7% of National Health Investors shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares National Health Investors and Diversified Healthcare Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Health Investors	$432.12 million	8.40	$142.18 million	$3.46	21.36
Diversified Healthcare Trust	N/A	N/A	N/A	N/A	N/A

National Health Investors has higher revenue and earnings than Diversified Healthcare Trust.

Profitability

This table compares National Health Investors and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Health Investors	38.56%	10.89%	5.88%
Diversified Healthcare Trust	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for National Health Investors and Diversified Healthcare Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Health Investors	1	2	5	0	2.50
Diversified Healthcare Trust	0	0	0	0	0.00

National Health Investors currently has a consensus target price of $83.86, suggesting a potential upside of 13.46%. Given National Health Investors’ stronger consensus rating and higher possible upside, analysts clearly believe National Health Investors is more favorable than Diversified Healthcare Trust.

Summary

National Health Investors beats Diversified Healthcare Trust on 9 of the 9 factors compared between the two stocks.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.