Head-To-Head Survey: Rexford Industrial Realty (NYSE:REXR) versus American Healthcare REIT (NYSE:AHR)

Rexford Industrial Realty (NYSE:REXR) and American Healthcare REIT (NYSE:AHR) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares Rexford Industrial Realty and American Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rexford Industrial Realty	23.25%	2.64%	1.82%
American Healthcare REIT	4.23%	3.33%	1.98%

Institutional and Insider Ownership

99.5% of Rexford Industrial Realty shares are held by institutional investors. Comparatively, 16.7% of American Healthcare REIT shares are held by institutional investors. 1.8% of Rexford Industrial Realty shares are held by insiders. Comparatively, 0.8% of American Healthcare REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Rexford Industrial Realty pays an annual dividend of $1.74 per share and has a dividend yield of 5.1%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Rexford Industrial Realty pays out 187.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Healthcare REIT pays out 172.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty has increased its dividend for 4 consecutive years. Rexford Industrial Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Rexford Industrial Realty has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, American Healthcare REIT has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Rexford Industrial Realty and American Healthcare REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rexford Industrial Realty	1	8	4	0	2.23
American Healthcare REIT	0	3	9	1	2.85

Rexford Industrial Realty presently has a consensus target price of $41.46, indicating a potential upside of 21.22%. American Healthcare REIT has a consensus target price of $55.64, indicating a potential upside of 20.08%. Given Rexford Industrial Realty’s higher possible upside, equities analysts clearly believe Rexford Industrial Realty is more favorable than American Healthcare REIT.

Valuation and Earnings

This table compares Rexford Industrial Realty and American Healthcare REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rexford Industrial Realty	$995.92 million	7.75	$212.03 million	$0.93	36.78
American Healthcare REIT	$2.37 billion	3.77	$69.81 million	$0.58	79.89

Rexford Industrial Realty has higher earnings, but lower revenue than American Healthcare REIT. Rexford Industrial Realty 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.

Summary

Rexford Industrial Realty beats American Healthcare REIT on 10 of the 18 factors compared between the two stocks.

About Rexford Industrial Realty

Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.

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.