Alexandria Real Estate Equities (NYSE:ARE) and Universal Health Realty Income Trust (NYSE:UHT) Head to Head Analysis

Alexandria Real Estate Equities (NYSE:ARE) and Universal Health Realty Income Trust (NYSE:UHT) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Dividends

Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 6.0%. Universal Health Realty Income Trust pays an annual dividend of $3.00 per share and has a dividend yield of 7.4%. Alexandria Real Estate Equities pays out -47.5% of its earnings in the form of a dividend. Universal Health Realty Income Trust pays out 215.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities has increased its dividend for 15 consecutive years and Universal Health Realty Income Trust has increased its dividend for 2 consecutive years.

Institutional and Insider Ownership

96.5% of Alexandria Real Estate Equities shares are held by institutional investors. Comparatively, 64.7% of Universal Health Realty Income Trust shares are held by institutional investors. 1.4% of Alexandria Real Estate Equities shares are held by insiders. Comparatively, 2.6% of Universal Health Realty Income Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Alexandria Real Estate Equities and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexandria Real Estate Equities	-36.08%	-5.21%	-2.92%
Universal Health Realty Income Trust	19.40%	12.31%	3.28%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Alexandria Real Estate Equities and Universal Health Realty Income Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexandria Real Estate Equities	4	10	2	0	1.88
Universal Health Realty Income Trust	0	1	0	0	2.00

Alexandria Real Estate Equities currently has a consensus price target of $52.62, indicating a potential upside of 9.39%. Given Alexandria Real Estate Equities’ higher possible upside, equities research analysts plainly believe Alexandria Real Estate Equities is more favorable than Universal Health Realty Income Trust.

Volatility and Risk

Alexandria Real Estate Equities has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares Alexandria Real Estate Equities and Universal Health Realty Income Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexandria Real Estate Equities	$3.03 billion	2.77	-$1.43 billion	($6.06)	-7.94
Universal Health Realty Income Trust	$99.19 million	5.72	$17.61 million	$1.39	29.36

Universal Health Realty Income Trust has lower revenue, but higher earnings than Alexandria Real Estate Equities. Alexandria Real Estate Equities 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.

Summary

Universal Health Realty Income Trust beats Alexandria Real Estate Equities on 10 of the 17 factors compared between the two stocks.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

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.