National Healthcare Properties (NASDAQ:NHP) and Omega Healthcare Investors (NYSE:OHI) Head-To-Head Analysis

Omega Healthcare Investors (NYSE:OHI) and National Healthcare Properties (NASDAQ:NHP) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 6.0%. National Healthcare Properties pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Omega Healthcare Investors pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Healthcare Properties pays out -230.8% of its earnings in the form of a dividend.

Profitability

This table compares Omega Healthcare Investors and National Healthcare Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	66.96%	15.76%	8.40%
National Healthcare Properties	-13.04%	-6.22%	-2.52%

Insider & Institutional Ownership

65.2% of Omega Healthcare Investors shares are owned by institutional investors. 1.7% of Omega Healthcare Investors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Omega Healthcare Investors and National Healthcare Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.28 billion	10.77	$572.03 million	$2.80	16.28
National Healthcare Properties	$342.28 million	3.41	-$57.62 million	($0.13)	-123.15

Omega Healthcare Investors has higher revenue and earnings than National Healthcare Properties. National Healthcare Properties is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Omega Healthcare Investors and National Healthcare Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	6	0	2.27
National Healthcare Properties	1	5	6	0	2.42

Omega Healthcare Investors presently has a consensus target price of $49.57, indicating a potential upside of 8.78%. National Healthcare Properties has a consensus target price of $18.00, indicating a potential upside of 12.43%. Given National Healthcare Properties’ stronger consensus rating and higher possible upside, analysts clearly believe National Healthcare Properties is more favorable than Omega Healthcare Investors.

Summary

Omega Healthcare Investors beats National Healthcare Properties on 11 of the 14 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

About National Healthcare Properties

National Healthcare Properties Inc. is a self-managed real estate investment trust focused on acquiring, owning and investing in a diversified portfolio of healthcare real estate, with an emphasis on providing senior housing. National Healthcare Properties Inc. is based in NEW YORK.