Physicians Realty Trust (DOC) versus Omega Healthcare Investors (OHI) Head-To-Head Review
Physicians Realty Trust (NYSE: DOC) and Omega Healthcare Investors (NYSE:OHI) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.
Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 4.9%. Omega Healthcare Investors pays an annual dividend of $2.60 per share and has a dividend yield of 9.2%. Physicians Realty Trust pays out 400.0% 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 pays out 317.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Physicians Realty Trust 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.
Physicians Realty Trust has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.
This table compares Physicians Realty Trust and Omega Healthcare Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Physicians Realty Trust||11.39%||1.70%||1.07%|
|Omega Healthcare Investors||17.61%||3.92%||1.82%|
Valuation & Earnings
This table compares Physicians Realty Trust and Omega Healthcare Investors’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Physicians Realty Trust||$241.03 million||13.88||$29.98 million||$0.23||81.18|
|Omega Healthcare Investors||$900.83 million||6.20||$366.41 million||$0.82||34.39|
Omega Healthcare Investors has higher revenue and earnings than Physicians Realty Trust. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than Physicians Realty Trust, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Physicians Realty Trust and Omega Healthcare Investors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Physicians Realty Trust||0||3||10||0||2.77|
|Omega Healthcare Investors||0||4||1||0||2.20|
Physicians Realty Trust currently has a consensus target price of $20.41, suggesting a potential upside of 9.31%. Omega Healthcare Investors has a consensus target price of $30.75, suggesting a potential upside of 9.04%. Given Physicians Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Physicians Realty Trust is more favorable than Omega Healthcare Investors.
Insider and Institutional Ownership
94.9% of Physicians Realty Trust shares are held by institutional investors. Comparatively, 68.1% of Omega Healthcare Investors shares are held by institutional investors. 0.5% of Physicians Realty Trust shares are held by company insiders. Comparatively, 1.5% of Omega Healthcare Investors shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Omega Healthcare Investors beats Physicians Realty Trust on 9 of the 17 factors compared between the two stocks.
Physicians Realty Trust Company Profile
Physicians Realty Trust (the Trust) is a real estate investment trust. Physicians Realty L.P. is the operating partnership of the Trust. The Trust and its operating partnership are engaged in acquiring, developing, owning and managing healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. As of December 31, 2016, the Company’s portfolio consisted of 246 properties located in 29 states with approximately 10,883,601 net leasable square feet. The Company invests in real estate that is integral to providing healthcare services. The Company focuses its investment activity on various types of healthcare properties, such as medical office buildings; outpatient treatment and diagnostic facilities; physician group practice clinics; ambulatory surgery centers, and specialty hospitals and treatment centers. Its properties include Arrowhead Commons, Aurora Medical Office Building, Decatur Medical Office Building and El Paso Medical Office Building.
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.
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