Healthcare Realty Trust (HR) versus The Competition Critical Analysis

Healthcare Realty Trust (NYSE:HR) is one of 40 publicly-traded companies in the “Healthcare REITs” industry, but how does it weigh in compared to its competitors? We will compare Healthcare Realty Trust to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Institutional and Insider Ownership

62.8% of shares of all “Healthcare REITs” companies are owned by institutional investors. 0.6% of Healthcare Realty Trust shares are owned by company insiders. Comparatively, 3.1% of shares of all “Healthcare REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 5.2%. Healthcare Realty Trust pays out -369.2% of its earnings in the form of a dividend. As a group, “Healthcare REITs” companies pay a dividend yield of 4.2% and pay out 217.2% of their earnings in the form of a dividend. Healthcare Realty Trust is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Healthcare Realty Trust has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Healthcare Realty Trust’s competitors have a beta of 0.85, meaning that their average stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Healthcare Realty Trust and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	0	7	5	0	2.42
Healthcare Realty Trust Competitors	419	1995	1979	79	2.38

Healthcare Realty Trust presently has a consensus price target of $21.36, suggesting a potential upside of 15.79%. As a group, “Healthcare REITs” companies have a potential upside of 13.96%. Given Healthcare Realty Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Healthcare Realty Trust is more favorable than its competitors.

Profitability

This table compares Healthcare Realty Trust and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-3.96%	-1.02%	-0.49%
Healthcare Realty Trust Competitors	18.87%	4.20%	2.19%

Valuation & Earnings

This table compares Healthcare Realty Trust and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Healthcare Realty Trust	$1.18 billion	-$246.07 million	-70.96
Healthcare Realty Trust Competitors	$1.27 billion	$1.61 million	52.24

Healthcare Realty Trust’s competitors have higher revenue and earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Healthcare Realty Trust competitors beat Healthcare Realty Trust on 10 of the 15 factors compared.

About Healthcare Realty Trust

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.