Head to Head Review: Healthcare Realty Trust (NYSE:HR) versus Acadia Realty Trust (NYSE:AKR)

Healthcare Realty Trust (NYSE:HR) and Acadia Realty Trust (NYSE:AKR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Healthcare Realty Trust and Acadia Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-37.53%	-7.22%	-3.91%
Acadia Realty Trust	2.38%	0.39%	0.19%

Dividends

Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.3%. Acadia Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 3.8%. Healthcare Realty Trust pays out -93.2% of its earnings in the form of a dividend. Acadia Realty Trust pays out 900.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Healthcare Realty Trust and Acadia Realty Trust’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.34 billion	4.78	-$278.26 million	($1.33)	-12.76
Acadia Realty Trust	$338.69 million	5.74	$19.87 million	$0.08	235.44

Acadia Realty Trust has lower revenue, but higher earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Healthcare Realty Trust has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Institutional & Insider Ownership

97.7% of Acadia Realty Trust shares are owned by institutional investors. 0.6% of Healthcare Realty Trust shares are owned by company insiders. Comparatively, 2.8% of Acadia Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Healthcare Realty Trust and Acadia Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	0	8	2	0	2.20
Acadia Realty Trust	0	3	2	0	2.40

Healthcare Realty Trust presently has a consensus price target of $17.50, suggesting a potential upside of 3.15%. Acadia Realty Trust has a consensus price target of $18.40, suggesting a potential downside of 2.31%. Given Healthcare Realty Trust’s higher possible upside, analysts plainly believe Healthcare Realty Trust is more favorable than Acadia Realty Trust.

Summary

Acadia Realty Trust beats Healthcare Realty Trust on 11 of the 15 factors compared between the two stocks.

About Healthcare Realty Trust

Healthcare Realty (NYSE: HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The Company selectively grows its portfolio through property acquisition and development. As the first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty's portfolio includes more than 700 properties totaling over 40 million square feet concentrated in 15 growth markets.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual Core Portfolio and Fund operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.