Arbor Realty Trust (NYSE: ABR) and Senior Housing Properties Trust (NASDAQ:SNH) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
This is a breakdown of current ratings for Arbor Realty Trust and Senior Housing Properties Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arbor Realty Trust||0||1||1||0||2.50|
|Senior Housing Properties Trust||0||1||1||0||2.50|
Arbor Realty Trust presently has a consensus target price of $8.88, suggesting a potential upside of 10.52%. Given Arbor Realty Trust’s higher probable upside, analysts clearly believe Arbor Realty Trust is more favorable than Senior Housing Properties Trust.
Volatility and Risk
Arbor Realty Trust has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Senior Housing Properties Trust has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.
This table compares Arbor Realty Trust and Senior Housing Properties Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arbor Realty Trust||54.47%||10.47%||2.48%|
|Senior Housing Properties Trust||11.14%||3.61%||1.65%|
Institutional and Insider Ownership
39.0% of Arbor Realty Trust shares are owned by institutional investors. Comparatively, 74.7% of Senior Housing Properties Trust shares are owned by institutional investors. 16.5% of Arbor Realty Trust shares are owned by insiders. Comparatively, 1.3% of Senior Housing Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Arbor Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 9.0%. Senior Housing Properties Trust pays an annual dividend of $1.56 per share and has a dividend yield of 8.2%. Arbor Realty Trust pays out 64.3% of its earnings in the form of a dividend. 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. Senior Housing Properties Trust has increased its dividend for 5 consecutive years. Arbor Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Arbor Realty Trust and Senior Housing Properties Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Arbor Realty Trust||$282.94 million||1.74||$68.71 million||$1.12||7.17|
|Senior Housing Properties Trust||N/A||N/A||N/A||$0.51||37.26|
Arbor Realty Trust has higher revenue and earnings than Senior Housing Properties Trust. Arbor Realty 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.
Arbor Realty Trust beats Senior Housing Properties Trust on 10 of the 13 factors compared between the two stocks.
About Arbor Realty Trust
Arbor Realty Trust, Inc. is a real estate investment trust. The Company invests in a portfolio of structured finance assets in the multifamily and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity. Its segments include Structured Business and Agency Business. In addition, the Company may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. It focuses on investment types, such as Bridge Financing, Mezzanine Financing, Junior Participation Financing and Preferred Equity Investments. It offers bridge financing products to borrowers, typically seeking short-term capital to use in an acquisition of property. It offers mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction.
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.
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