Analyzing American Healthcare REIT (NYSE:AHR) and Rithm Capital (NYSE:RITM)

Rithm Capital (NYSE:RITM) and American Healthcare REIT (NYSE:AHR) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Insider and Institutional Ownership

44.9% of Rithm Capital shares are held by institutional investors. Comparatively, 16.7% of American Healthcare REIT shares are held by institutional investors. 0.4% of Rithm Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.1%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 7.6%. Rithm Capital pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Rithm Capital and American Healthcare REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Capital	0	0	9	0	3.00
American Healthcare REIT	0	1	7	0	2.88

Rithm Capital presently has a consensus target price of $12.00, suggesting a potential upside of 9.74%. American Healthcare REIT has a consensus target price of $15.88, suggesting a potential upside of 19.90%. Given American Healthcare REIT’s higher probable upside, analysts clearly believe American Healthcare REIT is more favorable than Rithm Capital.

Profitability

This table compares Rithm Capital and American Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rithm Capital	17.15%	18.49%	3.20%
American Healthcare REIT	-4.02%	-5.19%	-1.66%

Valuation & Earnings

This table compares Rithm Capital and American Healthcare REIT’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Capital	$3.80 billion	1.39	$622.26 million	$1.10	9.94
American Healthcare REIT	$1.87 billion	0.93	-$71.47 million	N/A	N/A

Rithm Capital has higher revenue and earnings than American Healthcare REIT.

Summary

Rithm Capital beats American Healthcare REIT on 11 of the 13 factors compared between the two stocks.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.

About American Healthcare REIT

Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.