Contrasting Healthcare Realty Trust (NYSE:HR) & Whitestone REIT (NYSE:WSR)

Healthcare Realty Trust (NYSE:HR) and Whitestone REIT (NYSE:WSR) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Healthcare Realty Trust and Whitestone REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-32.95%	-7.70%	-3.78%
Whitestone REIT	21.70%	7.76%	2.98%

Volatility & Risk

Healthcare Realty Trust has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Whitestone REIT has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Dividends

Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 5.1%. Whitestone REIT pays an annual dividend of $0.54 per share and has a dividend yield of 4.5%. Healthcare Realty Trust pays out -83.5% of its earnings in the form of a dividend. Whitestone REIT pays out 83.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Whitestone REIT has increased its dividend for 5 consecutive years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

69.5% of Whitestone REIT shares are owned by institutional investors. 0.4% of Healthcare Realty Trust shares are owned by company insiders. Comparatively, 3.2% of Whitestone REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Healthcare Realty Trust and Whitestone REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.27 billion	5.24	-$654.48 million	($1.15)	-16.43
Whitestone REIT	$154.28 million	3.99	$36.89 million	$0.65	18.56

Whitestone REIT has lower revenue, but higher earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Whitestone REIT, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Healthcare Realty Trust and Whitestone REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	2	5	3	0	2.10
Whitestone REIT	0	1	2	0	2.67

Healthcare Realty Trust presently has a consensus price target of $18.75, indicating a potential downside of 0.76%. Whitestone REIT has a consensus price target of $15.00, indicating a potential upside of 24.34%. Given Whitestone REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Whitestone REIT is more favorable than Healthcare Realty Trust.

Summary

Whitestone REIT beats Healthcare Realty Trust on 11 of the 17 factors compared between the two stocks.

About Healthcare Realty Trust

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.

About Whitestone REIT

Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio. Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy.