Head to Head Analysis: Healthpeak Properties (NYSE:DOC) & Diversified Healthcare Trust (NASDAQ:DHC)

Healthpeak Properties (NYSE:DOC) and Diversified Healthcare Trust (NASDAQ:DHC) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Risk & Volatility

Healthpeak Properties has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Healthpeak Properties and Diversified Healthcare Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	0	14	4	0	2.22
Diversified Healthcare Trust	1	2	2	1	2.50

Healthpeak Properties currently has a consensus price target of $21.72, suggesting a potential upside of 3.80%. Diversified Healthcare Trust has a consensus price target of $9.83, suggesting a potential upside of 27.79%. Given Diversified Healthcare Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Diversified Healthcare Trust is more favorable than Healthpeak Properties.

Dividends

Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 5.8%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Healthpeak Properties pays out 348.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -3.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

93.6% of Healthpeak Properties shares are owned by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are owned by institutional investors. 0.2% of Healthpeak Properties shares are owned by company insiders. Comparatively, 10.2% of Diversified Healthcare Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Healthpeak Properties and Diversified Healthcare Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$2.82 billion	5.11	$71.35 million	$0.35	59.78
Diversified Healthcare Trust	$1.50 billion	1.24	-$285.89 million	($1.11)	-6.93

Healthpeak Properties has higher revenue and earnings than Diversified Healthcare Trust. Diversified Healthcare 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.

Profitability

This table compares Healthpeak Properties and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	8.24%	2.79%	1.17%
Diversified Healthcare Trust	-17.73%	-16.22%	-6.06%

Summary

Healthpeak Properties beats Diversified Healthcare Trust on 11 of the 17 factors compared between the two stocks.

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.

About Diversified Healthcare Trust

Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. The SHOP segment manages senior living communities that offers short term and long term residential care, and other services for residents where it pay fees to the operator to manage the communities for its account. The company was founded on December 16, 1998 and is headquartered in Newton, MA.