Healthcare Realty Trust (NYSE:HR – Get Free Report) and Federal Realty Investment Trust (NYSE:FRT – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.
Profitability
This table compares Healthcare Realty Trust and Federal Realty Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Healthcare Realty Trust | -51.60% | -11.20% | -5.69% |
| Federal Realty Investment Trust | 24.38% | 9.89% | 3.48% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Healthcare Realty Trust and Federal Realty Investment Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Healthcare Realty Trust | 1 | 4 | 0 | 0 | 1.80 |
| Federal Realty Investment Trust | 0 | 4 | 7 | 0 | 2.64 |
Volatility & Risk
Healthcare Realty Trust has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Institutional & Insider Ownership
93.9% of Federal Realty Investment Trust shares are owned by institutional investors. 0.4% of Healthcare Realty Trust shares are owned by company insiders. Comparatively, 1.0% of Federal Realty Investment Trust shares are owned 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.
Valuation and Earnings
This table compares Healthcare Realty Trust and Federal Realty Investment Trust”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Healthcare Realty Trust | $1.25 billion | 4.39 | -$278.26 million | ($1.78) | -8.78 |
| Federal Realty Investment Trust | $1.20 billion | 6.74 | $295.21 million | $3.43 | 27.53 |
Federal Realty Investment Trust has lower revenue, but higher earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Federal Realty Investment Trust, indicating that it is currently the more affordable of the two stocks.
Dividends
Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.9%. Federal Realty Investment Trust pays an annual dividend of $4.40 per share and has a dividend yield of 4.7%. Healthcare Realty Trust pays out -69.7% of its earnings in the form of a dividend. Federal Realty Investment Trust pays out 128.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has raised its dividend for 58 consecutive years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Federal Realty Investment Trust beats Healthcare Realty Trust on 14 of the 17 factors compared between the two stocks.
About Healthcare Realty Trust
Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.
About Federal Realty Investment Trust
Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.
Receive News & Ratings for Healthcare Realty Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Healthcare Realty Trust and related companies with MarketBeat.com's FREE daily email newsletter.
