Comparing Omega Healthcare Investors (OHI) and Healthcare Trust Of America (HTA)
Omega Healthcare Investors (NYSE: OHI) and Healthcare Trust Of America (NYSE:HTA) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
This table compares Omega Healthcare Investors and Healthcare Trust Of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Omega Healthcare Investors||40.20%||8.88%||4.17%|
|Healthcare Trust Of America||-4.18%||-0.97%||-0.46%|
Earnings & Valuation
This table compares Omega Healthcare Investors and Healthcare Trust Of America’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Omega Healthcare Investors||$926.66 million||6.75||$853.50 million||$1.89||16.77|
|Healthcare Trust Of America||$504.67 million||11.84||$301.67 million||$0.21||141.76|
Omega Healthcare Investors has higher revenue and earnings than Healthcare Trust Of America. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than Healthcare Trust Of America, indicating that it is currently the more affordable of the two stocks.
Omega Healthcare Investors pays an annual dividend of $2.56 per share and has a dividend yield of 8.1%. Healthcare Trust Of America pays an annual dividend of $1.22 per share and has a dividend yield of 4.1%. Omega Healthcare Investors pays out 135.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Trust Of America pays out 581.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors has raised its dividend for 4 consecutive years and Healthcare Trust Of America has raised its dividend for 7 consecutive years. Omega Healthcare Investors is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
72.8% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 97.8% of Healthcare Trust Of America shares are held by institutional investors. 1.5% of Omega Healthcare Investors shares are held by company insiders. Comparatively, 1.5% of Healthcare Trust Of America shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Omega Healthcare Investors has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Healthcare Trust Of America has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Omega Healthcare Investors and Healthcare Trust Of America, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Omega Healthcare Investors||0||2||0||0||2.00|
|Healthcare Trust Of America||0||1||7||1||3.00|
Omega Healthcare Investors currently has a consensus price target of $31.50, indicating a potential downside of 0.63%. Healthcare Trust Of America has a consensus price target of $33.50, indicating a potential upside of 12.53%. Given Healthcare Trust Of America’s stronger consensus rating and higher possible upside, analysts clearly believe Healthcare Trust Of America is more favorable than Omega Healthcare Investors.
Omega Healthcare Investors beats Healthcare Trust Of America on 10 of the 18 factors compared between the two stocks.
Omega Healthcare Investors Company Profile
Omega Healthcare Investors, Inc. is a self-administered real estate investment trust (REIT). The Company maintains a portfolio of long-term healthcare facilities and mortgages on healthcare facilities located in the United States and the United Kingdom. It operates through the segment, which consists of investments in healthcare-related real estate properties. It provides lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs) and assisted living facilities (ALFs), independent living facilities, rehabilitation and acute care facilities. Its portfolio consists of long-term leases and mortgage agreements. As of December 31, 2016, its portfolio of investments included 996 healthcare facilities located in 42 states and the United Kingdom and operated by 79 third-party operators. As of December 31, 2016, the Company’s portfolio consisted of 809 SNFs, 101 ALFs, 16 specialty facilities, one medical office building, fixed rate mortgages on 44 SNFs and two ALFs.
Healthcare Trust Of America Company Profile
Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.
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