National Health Investors (NYSE:NHI – Get Free Report) and Alexandria Real Estate Equities (NYSE:ARE – Get Free Report) are both mid-cap real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.
Profitability
This table compares National Health Investors and Alexandria Real Estate Equities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National Health Investors | 38.56% | 10.89% | 5.88% |
| Alexandria Real Estate Equities | -51.81% | -7.52% | -4.18% |
Analyst Ratings
This is a summary of recent recommendations and price targets for National Health Investors and Alexandria Real Estate Equities, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National Health Investors | 0 | 4 | 5 | 0 | 2.56 |
| Alexandria Real Estate Equities | 4 | 10 | 2 | 0 | 1.88 |
Dividends
National Health Investors pays an annual dividend of $3.76 per share and has a dividend yield of 5.5%. Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 6.8%. National Health Investors pays out 108.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities pays out -34.2% of its earnings in the form of a dividend. Alexandria Real Estate Equities has increased its dividend for 15 consecutive years. Alexandria Real Estate Equities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
National Health Investors has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Valuation & Earnings
This table compares National Health Investors and Alexandria Real Estate Equities”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Health Investors | $375.63 million | 8.95 | $142.18 million | $3.46 | 19.79 |
| Alexandria Real Estate Equities | $3.03 billion | 2.45 | -$1.43 billion | ($8.42) | -5.06 |
National Health Investors has higher earnings, but lower revenue than Alexandria Real Estate Equities. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than National Health Investors, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
62.5% of National Health Investors shares are owned by institutional investors. Comparatively, 96.5% of Alexandria Real Estate Equities shares are owned by institutional investors. 2.7% of National Health Investors shares are owned by company insiders. Comparatively, 1.4% of Alexandria Real Estate Equities shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
National Health Investors beats Alexandria Real Estate Equities on 11 of the 17 factors compared between the two stocks.
About National Health Investors
Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.
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