Contrasting Diversified Healthcare Trust (NASDAQ:DHC) & Healthpeak Properties (NYSE:DOC)

Healthpeak Properties (NYSE:DOC) and Diversified Healthcare Trust (NASDAQ:DHC) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Healthpeak Properties and Diversified Healthcare Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	0	13	4	0	2.24
Diversified Healthcare Trust	1	2	2	1	2.50

Healthpeak Properties presently has a consensus target price of $21.66, suggesting a potential upside of 3.32%. Diversified Healthcare Trust has a consensus target price of $9.83, suggesting a potential upside of 28.54%. Given Diversified Healthcare Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Diversified Healthcare Trust is more favorable than Healthpeak Properties.

Risk & Volatility

Healthpeak Properties has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500.

Profitability

This table compares Healthpeak Properties and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	8.24%	2.79%	1.17%
Diversified Healthcare Trust	-17.73%	-16.22%	-6.06%

Earnings and Valuation

This table compares Healthpeak Properties and Diversified Healthcare Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$543.46 million	26.59	$71.35 million	$0.35	59.89
Diversified Healthcare Trust	$1.54 billion	1.20	-$285.89 million	($1.11)	-6.89

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

Insider and Institutional Ownership

93.6% of Healthpeak Properties shares are held by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are held by institutional investors. 0.2% of Healthpeak Properties shares are held by company insiders. Comparatively, 10.2% of Diversified Healthcare Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 5.8%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Healthpeak Properties pays out 348.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -3.6% of its earnings in the form of a dividend.

Summary

Healthpeak Properties beats Diversified Healthcare Trust on 10 of the 17 factors compared between the two stocks.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.

About Diversified Healthcare Trust

Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. The SHOP segment manages senior living communities that offers short term and long term residential care, and other services for residents where it pay fees to the operator to manage the communities for its account. The company was founded on December 16, 1998 and is headquartered in Newton, MA.