United Development Funding IV (OTCMKTS:UDFI) vs. Diversified Healthcare Trust (NASDAQ:DHC) Head-To-Head Comparison

United Development Funding IV (OTCMKTS:UDFI) and Diversified Healthcare Trust (NASDAQ:DHC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Analyst Ratings

This is a summary of current ratings for United Development Funding IV and Diversified Healthcare Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Development Funding IV	0	0	0	0	N/A
Diversified Healthcare Trust	0	0	1	0	3.00

Diversified Healthcare Trust has a consensus price target of $4.50, indicating a potential upside of 34.33%. Given Diversified Healthcare Trust’s higher possible upside, analysts clearly believe Diversified Healthcare Trust is more favorable than United Development Funding IV.

Profitability

This table compares United Development Funding IV and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Development Funding IV	N/A	N/A	N/A
Diversified Healthcare Trust	-22.80%	-13.72%	-5.97%

Insider & Institutional Ownership

76.0% of Diversified Healthcare Trust shares are owned by institutional investors. 0.5% of United Development Funding IV shares are owned by company insiders. Comparatively, 1.4% of Diversified Healthcare Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares United Development Funding IV and Diversified Healthcare Trust’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Development Funding IV	N/A	N/A	N/A	N/A	N/A
Diversified Healthcare Trust	$1.41 billion	0.57	-$293.57 million	($1.37)	-2.45

United Development Funding IV has higher earnings, but lower revenue than Diversified Healthcare Trust.

Summary

Diversified Healthcare Trust beats United Development Funding IV on 5 of the 8 factors compared between the two stocks.

About United Development Funding IV

United Development Funding IV invests in secured loans for the acquisition and development of land into single-family home lots, and the construction of model and new single-family homes. It also makes equity investments in residential real estate. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. United Development Funding IV was founded in 2008 and is headquartered in Grapevine, Texas.

About Diversified Healthcare Trust

DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2023, DHC's approximately $7.2 billion portfolio included 371 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 8.6 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA.