Contrasting Macerich (NYSE:MAC) and Healthcare Realty Trust (NYSE:HR)

Macerich (NYSE:MAC) and Healthcare Realty Trust (NYSE:HR) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Macerich	-38.96%	-13.42%	-4.51%
Healthcare Realty Trust	-37.53%	-7.22%	-3.91%

Institutional & Insider Ownership

87.4% of Macerich shares are owned by institutional investors. 0.5% of Macerich shares are owned by company insiders. Comparatively, 0.6% of Healthcare Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Macerich and Healthcare Realty Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Macerich	$884.07 million	3.82	-$274.07 million	($1.56)	-10.02
Healthcare Realty Trust	$1.34 billion	4.93	-$278.26 million	($1.33)	-13.17

Macerich has higher earnings, but lower revenue than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Macerich, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Macerich and Healthcare Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macerich	4	2	1	0	1.57
Healthcare Realty Trust	0	8	2	0	2.20

Macerich presently has a consensus target price of $14.64, suggesting a potential downside of 6.35%. Healthcare Realty Trust has a consensus target price of $17.50, suggesting a potential downside of 0.06%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Healthcare Realty Trust is more favorable than Macerich.

Dividends

Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 4.3%. Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.1%. Macerich pays out -43.6% of its earnings in the form of a dividend. Healthcare Realty Trust pays out -93.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Macerich has a beta of 2.51, meaning that its stock price is 151% more volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Summary

Healthcare Realty Trust beats Macerich on 12 of the 16 factors compared between the two stocks.

About Macerich

Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich's portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).

About Healthcare Realty Trust

Healthcare Realty (NYSE: HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The Company selectively grows its portfolio through property acquisition and development. As the first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty's portfolio includes more than 700 properties totaling over 40 million square feet concentrated in 15 growth markets.