Financial Review: Omega Healthcare Investors (NYSE:OHI) and Healthcare Trust (NASDAQ:HTIBP)
by Kim Johansen · The Markets DailyHealthcare Trust (NASDAQ:HTIBP – Get Free Report) and Omega Healthcare Investors (NYSE:OHI – Get Free Report) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Valuation and Earnings
This table compares Healthcare Trust and Omega Healthcare Investors”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Healthcare Trust | $352.84 million | N/A | N/A | N/A | N/A |
| Omega Healthcare Investors | $1.19 billion | 11.87 | $572.03 million | $2.80 | 16.65 |
Omega Healthcare Investors has higher revenue and earnings than Healthcare Trust.
Profitability
This table compares Healthcare Trust and Omega Healthcare Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Healthcare Trust | N/A | N/A | N/A |
| Omega Healthcare Investors | 66.96% | 15.76% | 8.40% |
Dividends
Healthcare Trust pays an annual dividend of $1.78 per share and has a dividend yield of 7.0%. Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.8%. Omega Healthcare Investors pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
65.2% of Omega Healthcare Investors shares are owned by institutional investors. 1.7% of Omega Healthcare Investors shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Healthcare Trust and Omega Healthcare Investors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Healthcare Trust | 0 | 0 | 0 | 0 | 0.00 |
| Omega Healthcare Investors | 2 | 7 | 6 | 0 | 2.27 |
Omega Healthcare Investors has a consensus target price of $49.21, suggesting a potential upside of 5.57%. Given Omega Healthcare Investors’ stronger consensus rating and higher probable upside, analysts clearly believe Omega Healthcare Investors is more favorable than Healthcare Trust.
Summary
Omega Healthcare Investors beats Healthcare Trust on 9 of the 11 factors compared between the two stocks.
About Healthcare Trust
Healthcare Trust, Inc. is a publicly registered real estate investment trust focused on acquiring a diversified portfolio of healthcare real estate, with an emphasis on seniors housing and medical office buildings, located in the United States.
About Omega Healthcare Investors
Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.