Contrasting American Healthcare REIT (NYSE:AHR) and SL Green Realty (NYSE:SLG)

SL Green Realty (NYSE:SLG) and American Healthcare REIT (NYSE:AHR) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Institutional and Insider Ownership

90.0% of SL Green Realty shares are held by institutional investors. Comparatively, 16.7% of American Healthcare REIT shares are held by institutional investors. 5.0% of SL Green Realty shares are held by company insiders. Comparatively, 0.9% of American Healthcare REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

SL Green Realty has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, American Healthcare REIT has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Dividends

SL Green Realty pays an annual dividend of $3.09 per share and has a dividend yield of 5.9%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. SL Green Realty pays out 30,900.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Healthcare REIT pays out -454.5% of its earnings in the form of a dividend. SL Green Realty has raised its dividend for 1 consecutive years. SL Green Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations for SL Green Realty and American Healthcare REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SL Green Realty	1	10	5	0	2.25
American Healthcare REIT	0	1	10	2	3.08

SL Green Realty currently has a consensus target price of $64.33, indicating a potential upside of 23.30%. American Healthcare REIT has a consensus target price of $45.00, indicating a potential downside of 9.14%. Given SL Green Realty’s higher probable upside, equities research analysts clearly believe SL Green Realty is more favorable than American Healthcare REIT.

Earnings and Valuation

This table compares SL Green Realty and American Healthcare REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SL Green Realty	$910.38 million	4.09	$30.65 million	$0.01	5,217.70
American Healthcare REIT	$2.07 billion	4.03	-$37.81 million	($0.22)	-225.11

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SL Green Realty	1.75%	-0.22%	-0.08%
American Healthcare REIT	1.21%	1.13%	0.59%

Summary

SL Green Realty beats American Healthcare REIT on 11 of the 18 factors compared between the two stocks.

About SL Green Realty

3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.

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.