American Tower (NYSE:AMT) and American Healthcare REIT (NYSE:AHR) Head to Head Review

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

Volatility & Risk

American Healthcare REIT has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, American Tower has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares American Healthcare REIT and American Tower”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Healthcare REIT	$2.20 billion	3.85	-$37.81 million	$0.14	342.19
American Tower	$10.13 billion	8.16	$2.26 billion	$6.26	28.21

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

Dividends

American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. American Tower pays an annual dividend of $6.80 per share and has a dividend yield of 3.9%. American Healthcare REIT pays out 714.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Tower pays out 108.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Tower has raised its dividend for 1 consecutive years. American Tower is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Healthcare REIT	1.21%	1.09%	0.58%
American Tower	28.11%	28.79%	4.69%

Institutional & Insider Ownership

16.7% of American Healthcare REIT shares are held by institutional investors. Comparatively, 92.7% of American Tower shares are held by institutional investors. 0.9% of American Healthcare REIT shares are held by company insiders. Comparatively, 0.2% of American Tower 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for American Healthcare REIT and American Tower, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Healthcare REIT	0	2	10	2	3.00
American Tower	0	6	12	2	2.80

American Healthcare REIT presently has a consensus target price of $51.64, suggesting a potential upside of 7.78%. American Tower has a consensus target price of $226.67, suggesting a potential upside of 28.35%. Given American Tower’s higher possible upside, analysts clearly believe American Tower is more favorable than American Healthcare REIT.

Summary

American Tower beats American Healthcare REIT on 13 of the 17 factors compared between the two stocks.

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.

About American Tower

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 224,000 communications sites and a highly interconnected footprint of U.S. data center facilities.