National Health Investors (NYSE:NHI) & Paramount Group (NYSE:PGRE) Critical Contrast

National Health Investors (NYSE:NHI) and Paramount Group (NYSE:PGRE) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a summary of recent ratings for National Health Investors and Paramount Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Health Investors	0	4	4	0	2.50
Paramount Group	2	2	1	0	1.80

National Health Investors currently has a consensus price target of $60.50, indicating a potential downside of 1.66%. Paramount Group has a consensus price target of $4.60, indicating a potential upside of 0.66%. Given Paramount Group’s higher possible upside, analysts plainly believe Paramount Group is more favorable than National Health Investors.

Valuation and Earnings

This table compares National Health Investors and Paramount Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Health Investors	$319.84 million	8.35	$135.65 million	$3.13	19.65
Paramount Group	$742.79 million	1.34	-$259.74 million	($1.20)	-3.81

National Health Investors has higher earnings, but lower revenue than Paramount Group. Paramount Group is trading at a lower price-to-earnings ratio than National Health Investors, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

National Health Investors has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Paramount Group has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Institutional and Insider Ownership

62.5% of National Health Investors shares are owned by institutional investors. Comparatively, 65.6% of Paramount Group shares are owned by institutional investors. 7.3% of National Health Investors shares are owned by insiders. Comparatively, 13.5% of Paramount Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

National Health Investors pays an annual dividend of $3.60 per share and has a dividend yield of 5.9%. Paramount Group pays an annual dividend of $0.14 per share and has a dividend yield of 3.1%. National Health Investors pays out 115.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Paramount Group pays out -11.7% of its earnings in the form of a dividend.

Profitability

This table compares National Health Investors and Paramount Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Health Investors	42.40%	10.65%	5.41%
Paramount Group	-34.97%	-6.07%	-3.13%

Summary

National Health Investors beats Paramount Group on 10 of the 16 factors compared between the two stocks.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.

About Paramount Group

Paramount Group, Inc. ("Paramount" or the "Company") is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.