American Healthcare REIT (NYSE:AHR – Get Free Report) and SBA Communications (NASDAQ:SBAC – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.
Profitability
This table compares American Healthcare REIT and SBA Communications’ 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% |
| SBA Communications | 29.69% | -16.60% | 7.55% |
Analyst Ratings
This is a breakdown of recent ratings for American Healthcare REIT and SBA Communications, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Healthcare REIT | 0 | 3 | 10 | 1 | 2.86 |
| SBA Communications | 0 | 9 | 7 | 1 | 2.53 |
Dividends
American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. SBA Communications pays an annual dividend of $4.44 per share and has a dividend yield of 2.2%. 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. SBA Communications pays out 57.9% of its earnings in the form of a dividend. SBA Communications has increased its dividend for 6 consecutive years. SBA Communications is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares American Healthcare REIT and SBA Communications”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Healthcare REIT | $2.07 billion | 4.43 | -$37.81 million | $0.14 | 369.96 |
| SBA Communications | $2.68 billion | 7.98 | $749.54 million | $7.67 | 26.18 |
SBA Communications has higher revenue and earnings than American Healthcare REIT. SBA Communications 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.
Institutional & Insider Ownership
16.7% of American Healthcare REIT shares are owned by institutional investors. Comparatively, 97.4% of SBA Communications shares are owned by institutional investors. 1.0% of American Healthcare REIT shares are owned by company insiders. Comparatively, 0.9% of SBA Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
American Healthcare REIT has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, SBA Communications has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Summary
SBA Communications beats American Healthcare REIT on 11 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 SBA Communications
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas, Africa and in Asia, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.
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