National Health Investors (NYSE: NHI) and Aviv REIT (NASDAQ:AVIV) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider and Institutional Ownership

70.6% of National Health Investors shares are owned by institutional investors. 5.2% of National Health Investors shares are owned by 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 and Earnings

This table compares National Health Investors and Aviv REIT’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
National Health Investors $263.75 million 12.52 $257.02 million $3.89 20.72
Aviv REIT N/A N/A N/A N/A N/A

National Health Investors has higher revenue and earnings than Aviv REIT.

Dividends

National Health Investors pays an annual dividend of $3.80 per share and has a dividend yield of 4.7%. Aviv REIT does not pay a dividend. National Health Investors pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Health Investors has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for National Health Investors and Aviv REIT, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Health Investors 1 2 2 0 2.20
Aviv REIT 0 0 0 0 N/A

National Health Investors presently has a consensus target price of $79.25, indicating a potential downside of 1.66%. Given National Health Investors’ higher possible upside, analysts plainly believe National Health Investors is more favorable than Aviv REIT.

Profitability

This table compares National Health Investors and Aviv REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Health Investors 59.24% 12.56% 6.38%
Aviv REIT 25.04% 6.86% 2.80%

Summary

National Health Investors beats Aviv REIT on 10 of the 11 factors compared between the two stocks.

National Health Investors Company Profile

National Health Investors, Inc. is a self-managed real estate investment trust (REIT) specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. The Company is engaged in the business of owning and financing healthcare properties. Its portfolio consists of lease, mortgage and other note investments in independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities, specialty hospitals and medical office buildings. Its other investments include marketable securities and a joint venture structured to comply with the provisions of the REIT Investment Diversification Empowerment Act of 2007 (RIDEA) through which it invests in facility operations managed by an independent third party. As of December 31, 2016, it had investments in real estate, mortgage and other notes receivable involving 205 facilities located in 32 states.

Aviv REIT Company Profile

Aviv REIT, Inc. (AVIV) is a real estate investment trust (REIT). The Company is engaged in investments in healthcare properties, consisting primarily of skilled nursing facilities (SNFs), assisted living facilities (ALFs), and other healthcare properties located in the United States. It specializes in the ownership and triple-net leasing of post-acute and long-term care SNFs. Its leases include rent escalation provisions. The Company is the general partner of Aviv Healthcare Properties Limited Partnership. Its portfolio consists of approximately 346 properties, comprising 285 skilled nursing facilities, 35 assisted living facilities, 14 traumatic brain injury facilities, two long-term acute care hospitals, one neuro hospital, two independent living facilities, two medical office buildings, and five land parcels for development, with approximately 29,646 beds in 30 states triple-net leased to 37 operators.

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