Financial Analysis: Healthcare Realty Trust (HR) vs. Its Rivals

Healthcare Realty Trust (NYSE: HR) is one of 26 public companies in the “Healthcare REITs” industry, but how does it contrast to its rivals? We will compare Healthcare Realty Trust to similar companies based on the strength of its analyst recommendations, earnings, profitability, institutional ownership, risk, valuation and dividends.

Dividends

Healthcare Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.5%. Healthcare Realty Trust pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.0% and pay out 124.4% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for Healthcare Realty Trust and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Healthcare Realty Trust 1 3 4 0 2.38
Healthcare Realty Trust Competitors 202 827 675 12 2.29

Healthcare Realty Trust currently has a consensus price target of $32.60, suggesting a potential downside of 4.40%. As a group, “Healthcare REITs” companies have a potential upside of 0.43%. Given Healthcare Realty Trust’s rivals higher possible upside, analysts clearly believe Healthcare Realty Trust has less favorable growth aspects than its rivals.

Risk and Volatility

Healthcare Realty Trust has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Healthcare Realty Trust’s rivals have a beta of 0.50, meaning that their average share price is 50% less volatile than the S&P 500.

Institutional & Insider Ownership

92.1% of Healthcare Realty Trust shares are owned by institutional investors. Comparatively, 84.4% of shares of all “Healthcare REITs” companies are owned by institutional investors. 1.9% of Healthcare Realty Trust shares are owned by company insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Healthcare Realty Trust 28.98% 7.38% 4.04%
Healthcare Realty Trust Competitors 38.21% 7.68% 3.77%

Valuation & Earnings

This table compares Healthcare Realty Trust and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Healthcare Realty Trust $418.53 million $236.35 million 32.48
Healthcare Realty Trust Competitors $788.38 million $482.52 million 40.56

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

Summary

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

About Healthcare Realty Trust

Healthcare Realty Trust Incorporated is a self-managed and self-administered real estate investment trust. The Company owns, leases, manages, acquires, finances, develops and redevelops real estate properties associated primarily with the delivery of outpatient healthcare services across the United States. The Company provided property management services for 146 healthcare-related properties across the nation, totaling approximately 10.3 million square feet, as of December 31, 2016. As of December 31, 2016, the Company’s 202 owned real estate properties were located in 27 states and totaled approximately 14.6 million square feet. The Company’s medical office/outpatient facilities are located in various states of the United States, such as Alabama, Arizona, California, Colorado, District of Columbia, Florida, Hawaii, Illinois, Indiana, Iowa, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee, Texas, Virginia and Washington.

Receive News & Ratings for Healthcare Realty Trust Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Healthcare Realty Trust Incorporated and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply