Head-To-Head Review: American Healthcare REIT (NYSE:AHR) vs. National Healthcare Properties (NASDAQ:NHP)

National Healthcare Properties (NASDAQ:NHP) and American Healthcare REIT (NYSE:AHR) are both real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Valuation and Earnings

This table compares National Healthcare Properties and American Healthcare REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Healthcare Properties	$342.28 million	3.41	-$57.62 million	($0.13)	-123.23
American Healthcare REIT	$2.26 billion	5.35	$69.81 million	$0.68	81.54

American Healthcare REIT has higher revenue and earnings than National Healthcare Properties. National Healthcare Properties 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.

Analyst Recommendations

This is a summary of current recommendations for National Healthcare Properties and American Healthcare REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Healthcare Properties	1	5	6	0	2.42
American Healthcare REIT	0	2	12	0	2.86

National Healthcare Properties presently has a consensus price target of $18.22, indicating a potential upside of 13.75%. American Healthcare REIT has a consensus price target of $62.58, indicating a potential upside of 12.86%. Given National Healthcare Properties’ higher probable upside, equities research analysts clearly believe National Healthcare Properties is more favorable than American Healthcare REIT.

Institutional and Insider Ownership

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

Dividends

National Healthcare Properties pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. National Healthcare Properties pays out -230.8% of its earnings in the form of a dividend. American Healthcare REIT pays out 147.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Healthcare Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares National Healthcare Properties and American Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Healthcare Properties	-13.04%	-6.22%	-2.52%
American Healthcare REIT	4.84%	3.63%	2.25%

Summary

American Healthcare REIT beats National Healthcare Properties on 12 of the 15 factors compared between the two stocks.

About National Healthcare Properties

National Healthcare Properties Inc. is a self-managed real estate investment trust focused on acquiring, owning and investing in a diversified portfolio of healthcare real estate, with an emphasis on providing senior housing. National Healthcare Properties Inc. is based in NEW YORK.

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.