Head-To-Head Comparison: Healthcare Realty Trust (NYSE:HR) & Terreno Realty (NYSE:TRNO)

Healthcare Realty Trust (NYSE:HR) and Terreno Realty (NYSE:TRNO) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Healthcare Realty Trust and Terreno Realty’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%
Terreno Realty	59.56%	6.71%	5.28%

Valuation & Earnings

This table compares Healthcare Realty Trust and Terreno Realty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.20 billion	5.41	-$654.48 million	($1.15)	-16.09
Terreno Realty	$426.00 million	14.95	$184.50 million	$2.52	24.46

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

Analyst Ratings

This is a summary of current ratings for Healthcare Realty Trust and Terreno Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	2	5	3	0	2.10
Terreno Realty	0	7	4	0	2.36

Healthcare Realty Trust currently has a consensus price target of $18.75, indicating a potential upside of 1.33%. Terreno Realty has a consensus price target of $65.00, indicating a potential upside of 5.44%. Given Terreno Realty’s stronger consensus rating and higher probable upside, analysts plainly believe Terreno Realty is more favorable than Healthcare Realty Trust.

Dividends

Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 5.2%. Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.4%. Healthcare Realty Trust pays out -83.5% of its earnings in the form of a dividend. Terreno Realty pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty 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.

Volatility & Risk

Healthcare Realty Trust has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Summary

Terreno Realty beats Healthcare Realty Trust on 12 of the 15 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 Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.