Acadia Realty Trust (NYSE:AKR – Get Free Report) and Diversified Healthcare Trust (NASDAQ:DHC – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
97.7% of Acadia Realty Trust shares are held by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are held by institutional investors. 2.8% of Acadia Realty Trust shares are held by company insiders. Comparatively, 1.4% of Diversified Healthcare Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends
Acadia Realty Trust pays an annual dividend of $0.76 per share and has a dividend yield of 3.2%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.5%. Acadia Realty Trust pays out 844.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -2.5% of its earnings in the form of a dividend.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acadia Realty Trust | 0 | 2 | 2 | 0 | 2.50 |
| Diversified Healthcare Trust | 1 | 1 | 1 | 0 | 2.00 |
Acadia Realty Trust currently has a consensus price target of $23.00, indicating a potential downside of 1.98%. Diversified Healthcare Trust has a consensus price target of $4.50, indicating a potential upside of 71.10%. Given Diversified Healthcare Trust’s higher possible upside, analysts clearly believe Diversified Healthcare Trust is more favorable than Acadia Realty Trust.
Volatility & Risk
Acadia Realty Trust has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500.
Profitability
This table compares Acadia Realty Trust and Diversified Healthcare Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acadia Realty Trust | 3.07% | 0.48% | 0.25% |
| Diversified Healthcare Trust | -26.09% | -17.55% | -7.20% |
Valuation and Earnings
This table compares Acadia Realty Trust and Diversified Healthcare Trust”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acadia Realty Trust | $338.69 million | 8.29 | $19.87 million | $0.09 | 260.71 |
| Diversified Healthcare Trust | $1.41 billion | 0.45 | -$293.57 million | ($1.61) | -1.63 |
Acadia Realty Trust has higher earnings, but lower revenue than Diversified Healthcare Trust. Diversified Healthcare 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.
Summary
Acadia Realty Trust beats Diversified Healthcare Trust on 11 of the 15 factors compared between the two stocks.
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.
About Diversified Healthcare Trust
Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. The SHOP segment manages senior living communities that offers short term and long term residential care, and other services for residents where it pay fees to the operator to manage the communities for its account. The company was founded on December 16, 1998 and is headquartered in Newton, MA.
Receive News & Ratings for Acadia Realty Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Acadia Realty Trust and related companies with MarketBeat.com's FREE daily email newsletter.
