Universal Health Realty Income Trust (NYSE:UHT) versus Elme Communities (NYSE:ELME) Head-To-Head Analysis

Elme Communities (NYSE:ELME) and Universal Health Realty Income Trust (NYSE:UHT) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Dividends

Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.5%. Universal Health Realty Income Trust pays an annual dividend of $2.94 per share and has a dividend yield of 7.4%. Elme Communities pays out -480.0% of its earnings in the form of a dividend. Universal Health Realty Income Trust pays out 217.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust has raised its dividend for 2 consecutive years. Universal Health Realty Income Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

87.9% of Elme Communities shares are held by institutional investors. Comparatively, 64.7% of Universal Health Realty Income Trust shares are held by institutional investors. 1.2% of Elme Communities shares are held by insiders. Comparatively, 2.4% of Universal Health Realty Income Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Elme Communities and Universal Health Realty Income Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elme Communities	$243.92 million	5.84	-$13.10 million	($0.15)	-107.80
Universal Health Realty Income Trust	$98.42 million	5.58	$15.40 million	$1.35	29.36

Universal Health Realty Income Trust has lower revenue, but higher earnings than Elme Communities. Elme Communities is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Elme Communities has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Elme Communities and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elme Communities	-5.42%	-1.18%	-0.70%
Universal Health Realty Income Trust	18.41%	9.44%	3.07%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Elme Communities and Universal Health Realty Income Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elme Communities	0	3	1	0	2.25
Universal Health Realty Income Trust	0	0	0	0	0.00

Elme Communities presently has a consensus price target of $18.50, indicating a potential upside of 14.41%. Given Elme Communities’ stronger consensus rating and higher probable upside, analysts plainly believe Elme Communities is more favorable than Universal Health Realty Income Trust.

Summary

Universal Health Realty Income Trust beats Elme Communities on 9 of the 17 factors compared between the two stocks.

About Elme Communities

Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.