American Healthcare REIT (NYSE:AHR – Get Free Report) and Orion Office REIT (NYSE:ONL – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.
Valuation & Earnings
This table compares American Healthcare REIT and Orion Office REIT”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Healthcare REIT | $2.37 billion | 4.66 | $69.81 million | $0.58 | 98.91 |
| Orion Office REIT | $145.92 million | 1.01 | -$139.31 million | ($2.56) | -1.01 |
Dividends
American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.1%. American Healthcare REIT pays out 172.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orion Office REIT pays out -3.1% of its earnings in the form of a dividend. Orion Office REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
American Healthcare REIT has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Orion Office REIT has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.
Institutional & Insider Ownership
16.7% of American Healthcare REIT shares are held by institutional investors. Comparatively, 79.9% of Orion Office REIT shares are held by institutional investors. 0.7% of American Healthcare REIT shares are held by company insiders. Comparatively, 1.6% of Orion Office REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares American Healthcare REIT and Orion Office REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Healthcare REIT | 4.23% | 3.33% | 1.98% |
| Orion Office REIT | -98.36% | -21.88% | -11.79% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for American Healthcare REIT and Orion Office REIT, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Healthcare REIT | 0 | 2 | 12 | 0 | 2.86 |
| Orion Office REIT | 1 | 0 | 1 | 0 | 2.00 |
American Healthcare REIT presently has a consensus price target of $58.42, suggesting a potential upside of 1.83%. Orion Office REIT has a consensus price target of $3.50, suggesting a potential upside of 34.72%. Given Orion Office REIT’s higher possible upside, analysts plainly believe Orion Office REIT is more favorable than American Healthcare REIT.
Summary
American Healthcare REIT beats Orion Office REIT on 10 of the 16 factors compared between the two stocks.
About American Healthcare REIT
Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.
About Orion Office REIT
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
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