American Tower (NYSE:AMT – Get Rating) and Healthcare Trust of America (NYSE:HTA – Get Rating) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
This table compares American Tower and Healthcare Trust of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Trust of America||12.13%||2.90%||1.39%|
American Tower pays an annual dividend of $5.60 per share and has a dividend yield of 2.1%. Healthcare Trust of America pays an annual dividend of $1.30 per share and has a dividend yield of 4.4%. American Tower pays out 96.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Trust of America pays out 309.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Tower has increased its dividend for 13 consecutive years and Healthcare Trust of America has increased its dividend for 8 consecutive years.
Valuation and Earnings
This table compares American Tower and Healthcare Trust of America’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Tower||$9.36 billion||12.73||$2.57 billion||$5.78||45.15|
|Healthcare Trust of America||$767.07 million||8.86||$98.02 million||$0.42||70.67|
American Tower has higher revenue and earnings than Healthcare Trust of America. American Tower is trading at a lower price-to-earnings ratio than Healthcare Trust of America, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
American Tower has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Healthcare Trust of America has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
Institutional & Insider Ownership
91.0% of American Tower shares are held by institutional investors. 0.2% of American Tower shares are held by company insiders. Comparatively, 1.0% of Healthcare Trust of America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings for American Tower and Healthcare Trust of America, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Trust of America||0||5||2||0||2.29|
American Tower presently has a consensus price target of $288.92, indicating a potential upside of 10.72%. Healthcare Trust of America has a consensus price target of $33.60, indicating a potential upside of 13.21%. Given Healthcare Trust of America’s higher possible upside, analysts clearly believe Healthcare Trust of America is more favorable than American Tower.
American Tower beats Healthcare Trust of America on 12 of the 17 factors compared between the two stocks.
American Tower Company Profile (Get Rating)
American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites. For more information about American Tower, please visit the Earnings Materials and Investor Presentations sections of our investor relations website at www.americantower.com.
Healthcare Trust of America Company Profile (Get Rating)
Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of MOBs in the United States, comprising approximately 25.1 million square feet of GLA, with $7.4 billion invested primarily in MOBs. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. Investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions, which translates to superior demographics, high-quality graduates, intellectual talent and job growth. The strategic markets HTA invests in support a strong, long-term demand for quality medical office space. HTA utilizes an integrated asset management platform consisting of on-site leasing, property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each market. This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant retention, rental growth and long-term value creation. Headquartered in Scottsdale, Arizona, HTA has developed a national brand with dedicated relationships at the local level. Founded in 2006 and listed on the New York Stock Exchange in 2012, HTA has produced attractive returns for its stockholders that have outperformed the US REIT index.
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