Diversified Healthcare Trust (NASDAQ:DHC – Get Free Report) and Lamar Advertising (NASDAQ:LAMR – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Volatility & Risk
Diversified Healthcare Trust has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Lamar Advertising has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Profitability
This table compares Diversified Healthcare Trust and Lamar Advertising’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Diversified Healthcare Trust | -20.82% | -11.90% | -5.28% |
Lamar Advertising | 23.49% | 41.88% | 7.60% |
Dividends
Analyst Recommendations
This is a summary of current ratings and recommmendations for Diversified Healthcare Trust and Lamar Advertising, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Diversified Healthcare Trust | 0 | 0 | 1 | 0 | 3.00 |
Lamar Advertising | 0 | 2 | 0 | 0 | 2.00 |
Diversified Healthcare Trust presently has a consensus price target of $4.50, suggesting a potential upside of 85.95%. Lamar Advertising has a consensus price target of $109.50, suggesting a potential downside of 7.74%. Given Diversified Healthcare Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Diversified Healthcare Trust is more favorable than Lamar Advertising.
Valuation & Earnings
This table compares Diversified Healthcare Trust and Lamar Advertising’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Diversified Healthcare Trust | $1.41 billion | 0.41 | -$293.57 million | ($1.23) | -1.97 |
Lamar Advertising | $2.11 billion | 5.74 | $495.76 million | $4.85 | 24.47 |
Lamar Advertising has higher revenue and earnings than Diversified Healthcare Trust. Diversified Healthcare Trust is trading at a lower price-to-earnings ratio than Lamar Advertising, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
76.0% of Diversified Healthcare Trust shares are owned by institutional investors. Comparatively, 93.8% of Lamar Advertising shares are owned by institutional investors. 1.4% of Diversified Healthcare Trust shares are owned by insiders. Comparatively, 15.0% of Lamar Advertising shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Lamar Advertising beats Diversified Healthcare Trust on 12 of the 17 factors compared between the two stocks.
About Diversified Healthcare Trust
DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2023, DHC's approximately $7.2 billion portfolio included 371 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 8.6 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA.
About Lamar Advertising
Lamar Advertising Company operates as an outdoor advertising company in the United States and Canada. The company owns and operates billboards, logo signs, and transit advertising displays, as well as rents space for advertising on billboards, buses, shelters, benches, logo plates, and in airport terminals. Lamar Advertising Company was founded in 1902 and is headquartered in Baton Rouge, Louisiana.
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