Contrasting Diversified Healthcare Trust (NASDAQ:DHC) & HG (OTCMKTS:STLY)

Diversified Healthcare Trust (NASDAQ:DHC) and HG (OTCMKTS:STLY) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Earnings and Valuation

This table compares Diversified Healthcare Trust and HG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Healthcare Trust	$1.54 billion	0.73	-$370.26 million	($1.46)	-3.16
HG	$11.51 million	2.26	-$240,000.00	$0.43	11.63

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

Profitability

This table compares Diversified Healthcare Trust and HG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diversified Healthcare Trust	-18.83%	-14.69%	-5.69%
HG	5.02%	1.84%	1.33%

Institutional & Insider Ownership

76.0% of Diversified Healthcare Trust shares are owned by institutional investors. Comparatively, 1.7% of HG shares are owned by institutional investors. 1.4% of Diversified Healthcare Trust shares are owned by company insiders. Comparatively, 75.0% of HG shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Diversified Healthcare Trust has a beta of 2.61, meaning that its stock price is 161% more volatile than the S&P 500. Comparatively, HG has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Diversified Healthcare Trust and HG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Healthcare Trust	1	1	1	0	2.00
HG	0	0	0	0	0.00

Diversified Healthcare Trust currently has a consensus price target of $5.25, indicating a potential upside of 13.64%. Given Diversified Healthcare Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Diversified Healthcare Trust is more favorable than HG.

Summary

HG beats Diversified Healthcare Trust on 8 of the 14 factors compared between the two stocks.

About Diversified Healthcare Trust

Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. The SHOP segment manages senior living communities that offers short term and long term residential care, and other services for residents where it pay fees to the operator to manage the communities for its account. The company was founded on December 16, 1998 and is headquartered in Newton, MA.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.