Analyzing Arbor Realty Trust (NYSE:ABR) and Healthpeak Properties (NYSE:DOC)

Arbor Realty Trust (NYSE:ABR) and Healthpeak Properties (NYSE:DOC) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares Arbor Realty Trust and Healthpeak Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arbor Realty Trust	27.90%	18.12%	2.89%
Healthpeak Properties	13.97%	4.34%	1.95%

Valuation and Earnings

This table compares Arbor Realty Trust and Healthpeak Properties’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arbor Realty Trust	$1.33 billion	1.71	$371.43 million	$1.76	6.86
Healthpeak Properties	$2.18 billion	5.80	$306.01 million	$0.56	31.81

Arbor Realty Trust has higher earnings, but lower revenue than Healthpeak Properties. Arbor Realty Trust is trading at a lower price-to-earnings ratio than Healthpeak Properties, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

57.3% of Arbor Realty Trust shares are owned by institutional investors. Comparatively, 93.6% of Healthpeak Properties shares are owned by institutional investors. 3.4% of Arbor Realty Trust shares are owned by insiders. Comparatively, 0.3% of Healthpeak Properties shares are owned by 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.

Volatility & Risk

Arbor Realty Trust has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500. Comparatively, Healthpeak Properties has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Arbor Realty Trust and Healthpeak Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arbor Realty Trust	2	2	2	0	2.00
Healthpeak Properties	0	5	4	0	2.44

Arbor Realty Trust currently has a consensus price target of $14.71, suggesting a potential upside of 21.86%. Healthpeak Properties has a consensus price target of $17.67, suggesting a potential downside of 0.83%. Given Arbor Realty Trust’s higher probable upside, research analysts plainly believe Arbor Realty Trust is more favorable than Healthpeak Properties.

Dividends

Arbor Realty Trust pays an annual dividend of $1.72 per share and has a dividend yield of 14.3%. Healthpeak Properties pays an annual dividend of $1.20 per share and has a dividend yield of 6.7%. Arbor Realty Trust pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthpeak Properties pays out 214.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Arbor Realty Trust has increased its dividend for 12 consecutive years. Arbor Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Arbor Realty Trust beats Healthpeak Properties on 11 of the 17 factors compared between the two stocks.

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; 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; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.