Critical Comparison: Universal Health Realty Income Trust (NYSE:UHT) versus Terreno Realty (NYSE:TRNO)

Terreno Realty (NYSE:TRNO) and Universal Health Realty Income Trust (NYSE:UHT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Earnings & Valuation

This table compares Terreno Realty and Universal Health Realty Income Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terreno Realty	$442.61 million	14.24	$184.50 million	$2.52	24.19
Universal Health Realty Income Trust	$99.36 million	5.42	$19.23 million	$1.29	30.08

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

Risk & Volatility

Terreno Realty has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Profitability

This table compares Terreno Realty and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	59.56%	6.71%	5.28%
Universal Health Realty Income Trust	18.06%	10.63%	3.13%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Terreno Realty and Universal Health Realty Income Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	0	7	4	0	2.36
Universal Health Realty Income Trust	0	1	0	0	2.00

Terreno Realty presently has a consensus price target of $65.00, indicating a potential upside of 6.62%. Given Terreno Realty’s stronger consensus rating and higher possible upside, equities analysts plainly believe Terreno Realty is more favorable than Universal Health Realty Income Trust.

Dividends

Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.4%. Universal Health Realty Income Trust pays an annual dividend of $2.96 per share and has a dividend yield of 7.6%. 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. Universal Health Realty Income Trust pays out 229.5% 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 and Universal Health Realty Income Trust has increased its dividend for 2 consecutive years.

Institutional & Insider Ownership

64.7% of Universal Health Realty Income Trust shares are held by institutional investors. 2.4% of Terreno Realty shares are held by company insiders. Comparatively, 2.4% of Universal Health Realty Income Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Terreno Realty beats Universal Health Realty Income Trust on 13 of the 17 factors compared between the two stocks.

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.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.