Financial Review: Omega Healthcare Investors (NYSE:OHI) and Healthcare Trust (NASDAQ:HTIBP)

Healthcare Trust (NASDAQ:HTIBP) and Omega Healthcare Investors (NYSE:OHI) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Valuation and Earnings

This table compares Healthcare Trust and Omega Healthcare Investors”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Trust	$352.84 million	N/A	N/A	N/A	N/A
Omega Healthcare Investors	$1.19 billion	11.87	$572.03 million	$2.80	16.65

Omega Healthcare Investors has higher revenue and earnings than Healthcare Trust.

Profitability

This table compares Healthcare Trust and Omega Healthcare Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Trust	N/A	N/A	N/A
Omega Healthcare Investors	66.96%	15.76%	8.40%

Dividends

Healthcare Trust pays an annual dividend of $1.78 per share and has a dividend yield of 7.0%. Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.8%. Omega Healthcare Investors pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

65.2% of Omega Healthcare Investors shares are owned by institutional investors. 1.7% of Omega Healthcare Investors shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Healthcare Trust and Omega Healthcare Investors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Trust	0	0	0	0	0.00
Omega Healthcare Investors	2	7	6	0	2.27

Omega Healthcare Investors has a consensus target price of $49.21, suggesting a potential upside of 5.57%. Given Omega Healthcare Investors’ stronger consensus rating and higher probable upside, analysts clearly believe Omega Healthcare Investors is more favorable than Healthcare Trust.

Summary

Omega Healthcare Investors beats Healthcare Trust on 9 of the 11 factors compared between the two stocks.

About Healthcare Trust

Healthcare Trust, Inc. is a publicly registered real estate investment trust focused on acquiring a diversified portfolio of healthcare real estate, with an emphasis on seniors housing and medical office buildings, located in the United States.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.