Critical Analysis: Universal Health Realty Income Trust (NYSE:UHT) and Brookfield Infrastructure Partners (NYSE:BIP)

Universal Health Realty Income Trust (NYSE:UHT) and Brookfield Infrastructure Partners (NYSE:BIP) 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.

Insider & Institutional Ownership

64.7% of Universal Health Realty Income Trust shares are owned by institutional investors. Comparatively, 57.9% of Brookfield Infrastructure Partners shares are owned by institutional investors. 2.4% of Universal Health Realty Income Trust 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.

Dividends

Universal Health Realty Income Trust pays an annual dividend of $2.98 per share and has a dividend yield of 7.0%. Brookfield Infrastructure Partners pays an annual dividend of $1.72 per share and has a dividend yield of 4.5%. Universal Health Realty Income Trust pays out 231.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Infrastructure Partners pays out 191.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust has increased its dividend for 2 consecutive years and Brookfield Infrastructure Partners has increased its dividend for 18 consecutive years.

Profitability

This table compares Universal Health Realty Income Trust and Brookfield Infrastructure Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Realty Income Trust	18.06%	10.63%	3.13%
Brookfield Infrastructure Partners	4.40%	3.22%	0.87%

Volatility & Risk

Universal Health Realty Income Trust has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Brookfield Infrastructure Partners has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Universal Health Realty Income Trust and Brookfield Infrastructure Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Realty Income Trust	0	1	0	0	2.00
Brookfield Infrastructure Partners	0	3	6	0	2.67

Brookfield Infrastructure Partners has a consensus price target of $42.13, indicating a potential upside of 9.92%. Given Brookfield Infrastructure Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Brookfield Infrastructure Partners is more favorable than Universal Health Realty Income Trust.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Realty Income Trust	$99.01 million	5.97	$19.23 million	$1.29	33.03
Brookfield Infrastructure Partners	$23.10 billion	0.77	$771.00 million	$0.90	42.58

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

Summary

Brookfield Infrastructure Partners beats Universal Health Realty Income Trust on 9 of the 17 factors compared between the two stocks.

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.

About Brookfield Infrastructure Partners

Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 8.1 million electricity and natural gas connections; and 0.6 million long-term contracted sub-metering services. This segment also offers heating, cooling, and energy solutions; gas distribution; water heaters; and heating, ventilation, and air conditioner rental, as well as other home services. Its Transport segment offers transportation, storage, and handling services for merchandise goods, commodities, and passengers through a network of approximately 22,000 km of track; 5,500 km of track network; 9,800 km of rail; and 3,300 km of motorways. The company's Midstream segment offers natural gas transmission, gathering and processing, and storage services through approximately 15,000 km of natural gas transmission pipelines; 570 billion cubic feet of natural gas storage; 17 natural gas processing plants; and 10,600 km of gas gathering pipelines, as well as 525,000 tonnes polypropylene production capacity. Its Data segment operates approximately 228,000 operational telecom towers; approximately 54,000 kilometers of fiber optic cables; approximately 1 million fiber-to-the-premise connections; two semiconductor manufacturing facilities; and 70 distributed antenna systems, as well as 135 data centers and 750 megawatts of critical load capacity and an additional approximate 670 megawatts of contracted capacity. The company was incorporated in 2007 and is based in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P. operates as a subsidiary of Brookfield Corporation.