Senior Housing Properties Trust (NASDAQ: SNH) and NorthStar Asset Management Group (NYSE:CLNS) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitabiliy, institutional ownership, risk and dividends.

Risk & Volatility

Senior Housing Properties Trust has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, NorthStar Asset Management Group has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

77.2% of Senior Housing Properties Trust shares are held by institutional investors. Comparatively, 83.1% of NorthStar Asset Management Group shares are held by institutional investors. 1.3% of Senior Housing Properties Trust shares are held by company insiders. Comparatively, 8.0% of NorthStar Asset Management Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Senior Housing Properties Trust and NorthStar Asset Management Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Senior Housing Properties Trust $1.06 billion 4.76 $603.62 million $0.61 34.84
NorthStar Asset Management Group $1.35 billion 5.71 $728.80 million $0.12 116.51

NorthStar Asset Management Group has higher revenue and earnings than Senior Housing Properties Trust. Senior Housing Properties Trust is trading at a lower price-to-earnings ratio than NorthStar Asset Management Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Senior Housing Properties Trust and NorthStar Asset Management Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Senior Housing Properties Trust 0 1 1 0 2.50
NorthStar Asset Management Group 0 2 3 0 2.60

NorthStar Asset Management Group has a consensus price target of $17.06, suggesting a potential upside of 22.05%. Given NorthStar Asset Management Group’s stronger consensus rating and higher possible upside, analysts plainly believe NorthStar Asset Management Group is more favorable than Senior Housing Properties Trust.

Profitability

This table compares Senior Housing Properties Trust and NorthStar Asset Management Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Senior Housing Properties Trust 13.36% 4.33% 1.96%
NorthStar Asset Management Group 5.59% 5.09% 2.24%

Dividends

Senior Housing Properties Trust pays an annual dividend of $1.56 per share and has a dividend yield of 7.3%. NorthStar Asset Management Group pays an annual dividend of $1.08 per share and has a dividend yield of 7.7%. Senior Housing Properties Trust pays out 255.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NorthStar Asset Management Group pays out 900.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

NorthStar Asset Management Group beats Senior Housing Properties Trust on 13 of the 16 factors compared between the two stocks.

About Senior Housing Properties Trust

Senior Housing Properties Trust is a real estate investment trust (REIT). The Company’s segments include triple net senior living communities that provide short term and long term residential care and other services for residents; managed senior living communities that provide short term and long term residential care and other services for residents; properties leased to medical providers, medical related businesses, clinics and biotech laboratory tenants (MOBs), and all other, including certain properties that offer wellness, fitness and spa services to members. Properties in triple net senior living communities segment include leased independent living communities, assisted living communities and skilled nursing facilities. Properties in managed senior living communities segment include managed independent living communities and assisted living communities.

About NorthStar Asset Management Group

Colony NorthStar, Inc. is a diversified equity real estate investment trust (REIT). The Company combines a portfolio of real assets across the world, which are managed with a global real estate investment manager. The Company has property holdings in the healthcare, industrial and hospitality sectors, opportunistic equity and debt investments, and an embedded institutional and retail investment management business. In addition, the Company owns NorthStar Securities, LLC, a captive broker-dealer platform which raises capital in the retail market. The Company acquires, develops and operates industrial properties in metropolitan markets throughout the United States with a focus on light industrial buildings. The Company provides investment management services and offers investment products while serving as a fiduciary to a set of institutional and individual investors.

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