Critical Survey: Orion Office REIT (NYSE:ONL) & American Healthcare REIT (NYSE:AHR)

Orion Office REIT (NYSE:ONL) and American Healthcare REIT (NYSE:AHR) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

Orion Office REIT has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, American Healthcare REIT has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Insider & Institutional Ownership

79.9% of Orion Office REIT shares are held by institutional investors. Comparatively, 16.7% of American Healthcare REIT shares are held by institutional investors. 1.6% of Orion Office REIT shares are held by insiders. Comparatively, 0.7% of American Healthcare REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.1%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Orion Office REIT pays out -3.1% of its earnings in the form of a dividend. 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations for Orion Office REIT and American Healthcare REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Office REIT	1	0	1	0	2.00
American Healthcare REIT	0	2	12	0	2.86

Orion Office REIT presently has a consensus target price of $3.50, indicating a potential upside of 34.72%. American Healthcare REIT has a consensus target price of $58.42, indicating a potential upside of 1.83%. Given Orion Office REIT’s higher probable upside, analysts clearly believe Orion Office REIT is more favorable than American Healthcare REIT.

Valuation & Earnings

This table compares Orion Office REIT and American Healthcare REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Office REIT	$145.92 million	1.01	-$139.31 million	($2.56)	-1.01
American Healthcare REIT	$2.37 billion	4.66	$69.81 million	$0.58	98.91

American Healthcare REIT has higher revenue and earnings than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than American Healthcare REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Orion Office REIT and American Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Office REIT	-98.36%	-21.88%	-11.79%
American Healthcare REIT	4.23%	3.33%	1.98%

Summary

American Healthcare REIT beats Orion Office REIT on 10 of the 16 factors compared between the two stocks.

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.

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.