Reviewing Senior Housing Properties Trust (SNH) and Arbor Realty Trust (ABR)
Senior Housing Properties Trust (NASDAQ: SNH) and Arbor Realty Trust (NYSE:ABR) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, institutional ownership, valuation and risk.
Volatility and Risk
Senior Housing Properties Trust has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Arbor Realty Trust has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Senior Housing Properties Trust and Arbor Realty Trust, 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|
|Arbor Realty Trust||0||1||1||0||2.50|
Arbor Realty Trust has a consensus target price of $8.88, indicating a potential upside of 6.80%. Given Arbor Realty Trust’s higher probable upside, analysts clearly believe Arbor Realty Trust is more favorable than Senior Housing Properties Trust.
Insider & Institutional Ownership
74.2% of Senior Housing Properties Trust shares are owned by institutional investors. Comparatively, 36.8% of Arbor Realty Trust shares are owned by institutional investors. 1.3% of Senior Housing Properties Trust shares are owned by company insiders. Comparatively, 15.3% of Arbor Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Senior Housing Properties Trust pays an annual dividend of $1.56 per share and has a dividend yield of 7.9%. Arbor Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 8.7%. 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. Arbor Realty Trust pays out 64.9% of its earnings in the form of a dividend. Senior Housing Properties Trust has increased its dividend for 5 consecutive years. Arbor Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Senior Housing Properties Trust and Arbor Realty Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Senior Housing Properties Trust||N/A||N/A||N/A||$0.61||32.39|
|Arbor Realty Trust||$214.05 million||2.01||$57.55 million||$1.11||7.49|
Arbor Realty Trust has higher revenue and earnings than Senior Housing Properties Trust. Arbor Realty Trust is trading at a lower price-to-earnings ratio than Senior Housing Properties Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Senior Housing Properties Trust and Arbor Realty Trust’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%|
|Arbor Realty Trust||29.98%||12.46%||3.26%|
Arbor Realty Trust beats Senior Housing Properties Trust on 10 of the 12 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 Arbor Realty Trust
Arbor Realty Trust, Inc. is a real estate investment trust. The Company invests in a portfolio of structured finance assets in the multifamily and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity. Its segments include Structured Business and Agency Business. In addition, the Company may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. It focuses on investment types, such as Bridge Financing, Mezzanine Financing, Junior Participation Financing and Preferred Equity Investments. It offers bridge financing products to borrowers, typically seeking short-term capital to use in an acquisition of property. It offers mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction.
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