Healthcare Realty Trust (NYSE:HR – Get Rating) and Orchid Island Capital (NYSE:ORC – Get Rating) are both finance companies, but which is the best investment? We’ll compare the two companies based on institutional ownership strength, risk, analyst recommendations, profitability, earnings, dividends and valuation.
This is a breakdown of recent ratings and price targets for Healthcare Realty Trust and Orchid Island Capital, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Health Care Real Estate Trust||0||5||4||0||2.44|
|Capital of Orchid Island||0||3||0||0||2.00|
Healthcare Realty Trust currently has a consensus target price of $30.29, indicating a potential upside of 12.84%. Orchid Island Capital has a consensus target price of $4.25, indicating a potential upside of 30.37%. Given Orchid Island Capital’s possible higher upside, analysts clearly believe that Orchid Island Capital is more favorable than Healthcare Realty Trust.
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of Healthcare Realty Trust and Orchid Island Capital.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Health Care Real Estate Trust||$767.07 million||8.02||$98.02 million||$0.29||92.55|
|Capital of Orchid Island||$134.70 million||4.27||-$64.76 million||($1.25)||-2.61|
Healthcare Realty Trust has higher revenue and profits than Orchid Island Capital. Orchid Island Capital trades at a lower price-to-earnings ratio than Healthcare Realty Trust, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of Healthcare Realty Trust and Orchid Island Capital.
|Net margins||Return on equity||return on assets|
|Health Care Real Estate Trust||8.50%||2.08%||1.00%|
|Capital of Orchid Island||N / A||19.04%||2.16%|
Healthcare Realty Trust pays an annual dividend of $1.33 per share and has a dividend yield of 5.0%. Orchid Island Capital pays an annual dividend of $0.54 per share and has a dividend yield of 16.6%. Healthcare Realty Trust pays out 458.6% of its earnings as dividends, suggesting it may not have enough earnings to cover its dividend payment in the future. Orchid Island Capital distributes -43.2% of its profits as a dividend. Orchid Island Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Healthcare Realty Trust has a beta of 0.67, meaning its stock price is 33% less volatile than the S&P 500. In comparison, Orchid Island Capital has a beta of 1.31, meaning its stock price is 31% more volatile than the S&P 500.
Institutional and insider ownership
96.7% of the shares of Healthcare Realty Trust are held by institutional investors. By comparison, 21.8% of Orchid Island Capital’s shares are held by institutional investors. 1.0% of the shares of Healthcare Realty Trust are held by insiders. By comparison, 0.4% of Orchid Island Capital’s shares are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.
Healthcare Realty Trust beats Orchid Island Capital on 10 out of 16 factors compared between the two stocks.
About Healthcare Realty Trust
(Get an assessment)
Healthcare Realty Trust is a real estate investment trust that integrates the ownership, management, financing and development of income-generating real estate properties associated primarily with the provision of ambulatory healthcare services throughout the United States. As of September 30, 2020, the Company owned 211 real estate properties in 24 states totaling 15.5 million square feet and was valued at approximately $5.5 billion. The company provided leasing and property management services on 11.9 million square feet nationwide.
About Orchid Island Capital
(Get an assessment)
Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The Company’s RMBS is backed by single-family residential mortgages, called Agency RMBS. Its portfolio includes traditional transfer agency RMBS, such as mortgage transfer certificates and secured mortgage bonds; and structured agency RMBS comprising interest only securities, inverse interest only securities and principal only securities. The Company is considered a real estate investment trust for federal income tax purposes. Orchid Island Capital, Inc. was incorporated in 2010 and is based in Vero Beach, Florida.
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