Contrasting Seritage Growth Properties (NYSE:SRG) and American Healthcare REIT (NYSE:AHR)

Seritage Growth Properties (NYSE:SRG) and American Healthcare REIT (NYSE:AHR) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

78.9% of Seritage Growth Properties shares are held by institutional investors. Comparatively, 16.7% of American Healthcare REIT shares are held by institutional investors. 0.2% of Seritage Growth Properties shares are held by company insiders. Comparatively, 0.8% of American Healthcare REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Seritage Growth Properties and American Healthcare REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seritage Growth Properties	$18.20 million	8.71	-$68.21 million	($1.44)	-1.95
American Healthcare REIT	$2.26 billion	3.95	$69.81 million	$0.58	79.94

American Healthcare REIT has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than American Healthcare REIT, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Seritage Growth Properties and American Healthcare REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seritage Growth Properties	1	0	0	0	1.00
American Healthcare REIT	0	2	10	1	2.92

American Healthcare REIT has a consensus price target of $55.64, indicating a potential upside of 20.00%. Given American Healthcare REIT’s stronger consensus rating and higher possible upside, analysts plainly believe American Healthcare REIT is more favorable than Seritage Growth Properties.

Volatility & Risk

Seritage Growth Properties has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, American Healthcare REIT has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Seritage Growth Properties and American Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seritage Growth Properties	-487.58%	-23.03%	-16.16%
American Healthcare REIT	4.23%	3.33%	1.98%

Summary

American Healthcare REIT beats Seritage Growth Properties on 12 of the 15 factors compared between the two stocks.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.

About American Healthcare REIT

Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.