Critical Contrast: National Health Investors (NHI) vs. Its Rivals
National Health Investors (NYSE: NHI) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it compare to its peers? We will compare National Health Investors to related companies based on the strength of its analyst recommendations, institutional ownership, risk, earnings, dividends, valuation and profitability.
Insider & Institutional Ownership
70.6% of National Health Investors shares are held by institutional investors. Comparatively, 84.4% of shares of all “Healthcare REITs” companies are held by institutional investors. 5.2% of National Health Investors shares are held by company insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares National Health Investors and its peers’ 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%|
|National Health Investors Competitors||38.21%||7.68%||3.77%|
National Health Investors pays an annual dividend of $3.80 per share and has a dividend yield of 4.8%. 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. As a group, “Healthcare REITs” companies pay a dividend yield of 5.0% and pay out 124.4% of their earnings in the form of a dividend. National Health Investors has raised its dividend for 7 consecutive years.
Earnings and Valuation
This table compares National Health Investors and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|National Health Investors||$263.75 million||$257.02 million||20.55|
|National Health Investors Competitors||$863.81 million||$523.61 million||40.30|
National Health Investors’ peers have higher revenue and earnings than National Health Investors. National Health Investors is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a summary of recent ratings and recommmendations for National Health Investors and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Health Investors||1||2||1||0||2.00|
|National Health Investors Competitors||202||827||675||12||2.29|
National Health Investors currently has a consensus price target of $77.67, indicating a potential downside of 2.83%. As a group, “Healthcare REITs” companies have a potential upside of 1.30%. Given National Health Investors’ peers stronger consensus rating and higher possible upside, analysts plainly believe National Health Investors has less favorable growth aspects than its peers.
Risk and Volatility
National Health Investors has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, National Health Investors’ peers have a beta of 0.50, meaning that their average stock price is 50% less volatile than the S&P 500.
National Health Investors peers beat National Health Investors on 9 of the 15 factors compared.
About National Health Investors
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.
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