iStar Financial (NYSE: STAR) and Senior Housing Properties Trust (NYSE:SNH) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for iStar Financial and Senior Housing Properties Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iStar Financial 0 2 0 0 2.00
Senior Housing Properties Trust 1 4 2 0 2.14

iStar Financial currently has a consensus price target of $14.00, indicating a potential upside of 19.66%. Senior Housing Properties Trust has a consensus price target of $21.25, indicating a potential upside of 15.49%. Given iStar Financial’s higher possible upside, equities research analysts plainly believe iStar Financial is more favorable than Senior Housing Properties Trust.

Insider and Institutional Ownership

83.6% of iStar Financial shares are held by institutional investors. 4.4% of iStar Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares iStar Financial and Senior Housing Properties Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
iStar Financial $626.30 million 1.35 $243.53 million $1.83 6.39
Senior Housing Properties Trust N/A N/A N/A N/A N/A

iStar Financial has higher revenue and earnings than Senior Housing Properties Trust.

Profitability

This table compares iStar Financial and Senior Housing Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iStar Financial 32.82% 22.21% 4.79%
Senior Housing Properties Trust 6.43% 2.01% 0.95%

Summary

iStar Financial beats Senior Housing Properties Trust on 7 of the 9 factors compared between the two stocks.

iStar Financial Company Profile

iStar Inc. finances, invests in and develops real estate and real estate related projects as part of its integrated investment platform. The Company’s four business segments are Real Estate Finance, Net Lease, Operating Properties, and Land and Development. The Real Estate Finance portfolio consists of senior and mezzanine real estate loans that may be either fixed-rate or variable-rate. The Net Lease portfolio consists of properties owned by the Company and leased to single tenants, where the properties are subject to long-term leases. The Operating Properties portfolio consists of commercial and residential properties, which represent a pool of assets across a range of geographies and property types. The Land and Development portfolio consists of land entitled for master planned communities, as well as waterfront and urban infill land parcels located throughout the United States. Its Land and Development projects include Great Oaks, Sage Scottsdale, Naples Reserve and Coney Island.

Senior Housing Properties Trust Company Profile

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.

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