Brookfield Infrastructure Partners (NYSE:BIP) & Diversified Healthcare Trust (NASDAQ:DHC) Financial Comparison

Brookfield Infrastructure Partners (NYSE:BIP) and Diversified Healthcare Trust (NASDAQ:DHC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Institutional and Insider Ownership

57.9% of Brookfield Infrastructure Partners shares are held by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are held by institutional investors. 10.2% of Diversified Healthcare Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Brookfield Infrastructure Partners and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Infrastructure Partners	3.46%	2.54%	0.68%
Diversified Healthcare Trust	-21.10%	-18.75%	-7.09%

Dividends

Brookfield Infrastructure Partners pays an annual dividend of $1.82 per share and has a dividend yield of 5.0%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Brookfield Infrastructure Partners pays out 275.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -3.0% of its earnings in the form of a dividend. Brookfield Infrastructure Partners has raised its dividend for 18 consecutive years. Brookfield Infrastructure Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Brookfield Infrastructure Partners and Diversified Healthcare Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Infrastructure Partners	$23.10 billion	0.73	$771.00 million	$0.66	55.12
Diversified Healthcare Trust	$1.54 billion	1.48	-$285.89 million	($1.33)	-7.09

Brookfield Infrastructure Partners has higher revenue and earnings than Diversified Healthcare Trust. Diversified Healthcare Trust is trading at a lower price-to-earnings ratio than Brookfield Infrastructure Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Brookfield Infrastructure Partners and Diversified Healthcare Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Infrastructure Partners	0	2	8	0	2.80
Diversified Healthcare Trust	1	2	2	1	2.50

Brookfield Infrastructure Partners presently has a consensus price target of $44.63, indicating a potential upside of 22.66%. Diversified Healthcare Trust has a consensus price target of $9.83, indicating a potential upside of 4.28%. Given Brookfield Infrastructure Partners’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Brookfield Infrastructure Partners is more favorable than Diversified Healthcare Trust.

Volatility and Risk

Brookfield Infrastructure Partners has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500.

Summary

Brookfield Infrastructure Partners beats Diversified Healthcare Trust on 12 of the 18 factors compared between the two stocks.

About Brookfield Infrastructure Partners

Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 8.1 million electricity and natural gas connections; and 0.6 million long-term contracted sub-metering services. This segment also offers heating, cooling, and energy solutions; gas distribution; water heaters; and heating, ventilation, and air conditioner rental, as well as other home services. Its Transport segment offers transportation, storage, and handling services for merchandise goods, commodities, and passengers through a network of approximately 22,000 km of track; 5,500 km of track network; 9,800 km of rail; and 3,300 km of motorways. The company's Midstream segment offers natural gas transmission, gathering and processing, and storage services through approximately 15,000 km of natural gas transmission pipelines; 570 billion cubic feet of natural gas storage; 17 natural gas processing plants; and 10,600 km of gas gathering pipelines, as well as 525,000 tonnes polypropylene production capacity. Its Data segment operates approximately 228,000 operational telecom towers; approximately 54,000 kilometers of fiber optic cables; approximately 1 million fiber-to-the-premise connections; two semiconductor manufacturing facilities; and 70 distributed antenna systems, as well as 135 data centers and 750 megawatts of critical load capacity and an additional approximate 670 megawatts of contracted capacity. The company was incorporated in 2007 and is based in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P. operates as a subsidiary of Brookfield Corporation.

About Diversified Healthcare Trust

Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. The SHOP segment manages senior living communities that offers short term and long term residential care, and other services for residents where it pay fees to the operator to manage the communities for its account. The company was founded on December 16, 1998 and is headquartered in Newton, MA.