Head to Head Comparison: Senior Housing Properties Trust (SNH) and Investors Real Estate Trust (IRET)

Senior Housing Properties Trust (NASDAQ: SNH) and Investors Real Estate Trust (NYSE:IRET) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Insider and Institutional Ownership

75.0% of Senior Housing Properties Trust shares are owned by institutional investors. Comparatively, 53.7% of Investors Real Estate Trust shares are owned by institutional investors. 1.3% of Senior Housing Properties Trust shares are owned by company insiders. Comparatively, 1.0% of Investors Real Estate Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Senior Housing Properties Trust and Investors Real Estate Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Senior Housing Properties Trust $1.07 billion 4.44 $591.15 million $0.51 39.18
Investors Real Estate Trust $205.74 million 3.62 $99.75 million $0.26 23.77

Senior Housing Properties Trust has higher revenue and earnings than Investors Real Estate Trust. Investors Real Estate Trust is trading at a lower price-to-earnings ratio than Senior Housing Properties Trust, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Senior Housing Properties Trust has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Investors Real Estate Trust has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Profitability

This table compares Senior Housing Properties Trust and Investors Real Estate Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Senior Housing Properties Trust 11.14% 3.61% 1.65%
Investors Real Estate Trust 21.07% -2.51% -0.80%

Dividends

Senior Housing Properties Trust pays an annual dividend of $1.56 per share and has a dividend yield of 7.8%. Investors Real Estate Trust pays an annual dividend of $0.28 per share and has a dividend yield of 4.5%. Senior Housing Properties Trust pays out 305.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Investors Real Estate Trust pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Senior Housing Properties Trust and Investors Real Estate Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Senior Housing Properties Trust 0 1 1 0 2.50
Investors Real Estate Trust 0 2 1 0 2.33

Investors Real Estate Trust has a consensus price target of $6.18, indicating a potential upside of 0.05%. Given Investors Real Estate Trust’s higher possible upside, analysts plainly believe Investors Real Estate Trust is more favorable than Senior Housing Properties Trust.

Summary

Senior Housing Properties Trust beats Investors Real Estate Trust on 11 of the 15 factors compared between the two stocks.

About Senior Housing Properties Trust

Senior Housing Properties Trust is a real estate investment trust (REIT). The Company’s segments include triple net senior living communities that provide short term and long term residential care and other services for residents; managed senior living communities that provide short term and long term residential care and other services for residents; properties leased to medical providers, medical related businesses, clinics and biotech laboratory tenants (MOBs), and all other, including certain properties that offer wellness, fitness and spa services to members. Properties in triple net senior living communities segment include leased independent living communities, assisted living communities and skilled nursing facilities. Properties in managed senior living communities segment include managed independent living communities and assisted living communities.

About Investors Real Estate Trust

Investors Real Estate Trust is a self-advised equity real estate investment trust (REIT). The Company’s business consists of owning and operating income-producing real estate properties. Its segments include Multifamily, Healthcare and All Other. Its investments consist of multifamily and healthcare properties located primarily in the upper Midwest states of Minnesota and North Dakota. It conducts its business operations through its operating partnership, IRET Properties, which is principally engaged in acquiring, owning, operating and leasing real estate. It invests in multifamily properties and commercial properties that are leased to single or multiple tenants, usually for approximately five years or longer. As of May 26, 2017, the Company held for investment 86 multifamily properties containing 12,813 apartment units and 44 commercial properties, consisting of healthcare, industrial, office and retail, containing approximately 2.7 million square feet of leasable space.

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