Healthpeak Properties (NYSE:DOC) vs. Diversified Healthcare Trust (NASDAQ:DHC) Financial Analysis

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Healthcare Trust	$1.54 billion	1.27	-$285.89 million	($1.11)	-7.28
Healthpeak Properties	$2.82 billion	5.29	$71.35 million	$0.35	61.84

Healthpeak Properties has higher revenue and earnings 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.

Profitability

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

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

Dividends

Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 5.6%. Diversified Healthcare Trust pays out -3.6% of its earnings in the form of a dividend. 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.

Analyst Ratings

This is a summary of recent ratings and target prices for Diversified Healthcare Trust and Healthpeak Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Healthcare Trust	1	2	2	1	2.50
Healthpeak Properties	0	14	4	0	2.22

Diversified Healthcare Trust presently has a consensus price target of $9.83, indicating a potential upside of 21.70%. Healthpeak Properties has a consensus price target of $21.66, indicating a potential upside of 0.05%. Given Diversified Healthcare Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Diversified Healthcare Trust is more favorable than Healthpeak Properties.

Insider and Institutional Ownership

76.0% of Diversified Healthcare Trust shares are owned by institutional investors. Comparatively, 93.6% of Healthpeak Properties shares are owned by institutional investors. 10.2% of Diversified Healthcare Trust shares are owned by insiders. Comparatively, 0.2% of Healthpeak Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

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

Summary

Healthpeak Properties beats Diversified Healthcare Trust on 11 of the 17 factors compared between the two stocks.

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.

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.