National Health Investors (NYSE:NHI) and Alexandria Real Estate Equities (NYSE:ARE) Head to Head Review

Alexandria Real Estate Equities (NYSE:ARE) and National Health Investors (NYSE:NHI) are both mid-cap real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Volatility and Risk

Alexandria Real Estate Equities has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, National Health Investors has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Institutional and Insider Ownership

96.5% of Alexandria Real Estate Equities shares are owned by institutional investors. Comparatively, 62.5% of National Health Investors shares are owned by institutional investors. 1.4% of Alexandria Real Estate Equities shares are owned by insiders. Comparatively, 2.7% of National Health Investors shares are owned by 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Alexandria Real Estate Equities and National Health Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexandria Real Estate Equities	4	10	2	0	1.88
National Health Investors	0	4	5	0	2.56

Alexandria Real Estate Equities currently has a consensus target price of $49.93, indicating a potential upside of 23.11%. National Health Investors has a consensus target price of $81.00, indicating a potential upside of 21.21%. Given Alexandria Real Estate Equities’ higher possible upside, analysts clearly believe Alexandria Real Estate Equities is more favorable than National Health Investors.

Profitability

This table compares Alexandria Real Estate Equities and National Health Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexandria Real Estate Equities	-51.81%	-7.52%	-4.18%
National Health Investors	38.56%	10.89%	5.88%

Dividends

Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 7.1%. National Health Investors pays an annual dividend of $3.76 per share and has a dividend yield of 5.6%. Alexandria Real Estate Equities pays out -47.5% of its earnings in the form of a dividend. National Health Investors pays out 108.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities has raised its dividend for 15 consecutive years. Alexandria Real Estate Equities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Alexandria Real Estate Equities and National Health Investors”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexandria Real Estate Equities	$3.03 billion	2.33	-$1.43 billion	($6.06)	-6.69
National Health Investors	$375.63 million	8.74	$142.18 million	$3.46	19.31

National Health Investors has lower revenue, but higher earnings than Alexandria Real Estate Equities. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than National Health Investors, indicating that it is currently the more affordable of the two stocks.

Summary

National Health Investors beats Alexandria Real Estate Equities on 10 of the 17 factors compared between the two stocks.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.