National Health Investors (NYSE:NHI – Get Free Report) and Granite Real Estate (NYSE:GRP.U – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for National Health Investors and Granite Real Estate, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National Health Investors | 0 | 1 | 3 | 1 | 3.00 |
| Granite Real Estate | 0 | 0 | 0 | 0 | 0.00 |
National Health Investors presently has a consensus target price of $84.20, indicating a potential upside of 7.67%. Given National Health Investors’ stronger consensus rating and higher probable upside, equities analysts plainly believe National Health Investors is more favorable than Granite Real Estate.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Health Investors | $348.66 million | 10.65 | $137.99 million | $3.13 | 24.98 |
| Granite Real Estate | $415.37 million | 8.35 | $263.17 million | $3.86 | 14.65 |
Granite Real Estate has higher revenue and earnings than National Health Investors. Granite Real Estate is trading at a lower price-to-earnings ratio than National Health Investors, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
62.5% of National Health Investors shares are held by institutional investors. Comparatively, 57.1% of Granite Real Estate shares are held by institutional investors. 7.3% of National Health Investors shares are held by company insiders. Comparatively, 0.3% of Granite Real Estate shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
National Health Investors pays an annual dividend of $3.68 per share and has a dividend yield of 4.7%. Granite Real Estate pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. National Health Investors pays out 117.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Real Estate pays out 5.2% of its earnings in the form of a dividend.
Profitability
This table compares National Health Investors and Granite Real Estate’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National Health Investors | 40.97% | 10.32% | 5.41% |
| Granite Real Estate | 56.61% | 6.01% | 3.52% |
Summary
National Health Investors beats Granite Real Estate on 11 of the 16 factors compared between the two stocks.
About National Health Investors
Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.
About Granite Real Estate
Granite Real Estate Investment Trust is engaged in the ownership and management of predominantly industrial properties in Canada, the United States, Mexico and Europe. The Company owns and manages rental income properties. Its services include sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. Granite Real Estate Investment Trust, formerly known as Granite Real Estate Inc., is based in Toronto, Canada.
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