Contrasting Clipper Realty (NYSE:CLPR) and Diversified Healthcare Trust (NASDAQ:DHC)

Clipper Realty (NYSE:CLPR) and Diversified Healthcare Trust (NASDAQ:DHC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 12.0%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Clipper Realty pays out -46.9% of its earnings in the form of a dividend. Diversified Healthcare Trust pays out -3.0% 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. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

37.6% of Clipper Realty shares are owned by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are owned by institutional investors. 54.6% of Clipper Realty shares are owned by company insiders. Comparatively, 10.2% of Diversified Healthcare Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Clipper Realty has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Clipper Realty and Diversified Healthcare Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clipper Realty	0	1	0	0	2.00
Diversified Healthcare Trust	1	2	2	1	2.50

Diversified Healthcare Trust has a consensus target price of $9.17, indicating a potential upside of 6.71%. Given Diversified Healthcare Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Diversified Healthcare Trust is more favorable than Clipper Realty.

Valuation and Earnings

This table compares Clipper Realty and Diversified Healthcare Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clipper Realty	$153.20 million	0.33	-$19.90 million	($0.81)	-3.91
Diversified Healthcare Trust	$1.54 billion	1.35	-$285.89 million	($1.33)	-6.46

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clipper Realty	-7.10%	N/A	-0.87%
Diversified Healthcare Trust	-21.10%	-18.75%	-7.09%

Summary

Clipper Realty beats Diversified Healthcare Trust on 9 of the 17 factors compared between the two stocks.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.

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.