Healthcare Realty Trust (NYSE:HR – Get Free Report) and Macerich (NYSE:MAC – Get Free Report) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
Dividends
Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.1%. Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 4.3%. Healthcare Realty Trust pays out -93.2% of its earnings in the form of a dividend. Macerich pays out -43.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Healthcare Realty Trust and Macerich, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Healthcare Realty Trust | 0 | 8 | 2 | 0 | 2.20 |
| Macerich | 4 | 2 | 1 | 0 | 1.57 |
Earnings and Valuation
This table compares Healthcare Realty Trust and Macerich’s 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 | 4.93 | -$278.26 million | ($1.33) | -13.17 |
| Macerich | $884.07 million | 3.82 | -$274.07 million | ($1.56) | -10.02 |
Macerich has lower revenue, but higher earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Macerich, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
87.4% of Macerich shares are held by institutional investors. 0.6% of Healthcare Realty Trust shares are held by company insiders. Comparatively, 0.5% of Macerich shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Healthcare Realty Trust has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Macerich has a beta of 2.51, suggesting that its stock price is 151% more volatile than the S&P 500.
Profitability
This table compares Healthcare Realty Trust and Macerich’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% |
| Macerich | -38.96% | -13.42% | -4.51% |
Summary
Healthcare Realty Trust beats Macerich on 12 of the 16 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 Macerich
Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich's portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).
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