Healthcare Trust of America (NYSE:HTA – Get Rating) and Farmland Partners (NYSE:FPI – Get Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
Volatility and Risk
Healthcare Trust of America has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Farmland Partners has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Institutional and Insider Ownership
44.3% of Farmland Partners shares are owned by institutional investors. 1.0% of Healthcare Trust of America shares are owned by company insiders. Comparatively, 13.6% of Farmland Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings:
This table compares Healthcare Trust of America and Farmland Partners’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue: | Price/Sales Ratio: | Net Income: | Earnings Per Share: | Price/Earnings Ratio: | |
| Healthcare Trust of America | $767.07 million | 8:61 a.m | $98.02 million | $0.42 | 68.62: |
| Farmland Partners | $51.74 million | 13.30 | $9.99 million | ($0.22) | -62.45: |
Healthcare Trust of America has higher revenue and earnings than Farmland Partners. Farmland Partners 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.
Dividends:
Healthcare Trust of America pays an annual dividend of $1.30 per share and has a dividend yield of 4.5%. Farmland Partners pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. 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. Farmland Partners pays out -109.1% of its earnings in the form of a dividend. Healthcare Trust of America has increased its dividend for 8 consecutive years and Farmland Partners has increased its dividend for 1 consecutive year. Healthcare Trust of America is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability:
This table compares Healthcare Trust of America and Farmland Partners’ 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% |
| Farmland Partners | 10.44% | 1.39% | 0.51% |
Analyst Recommendations:
This is a breakdown of recent ratings for Healthcare Trust of America and Farmland Partners, as reported by MarketBeat.com.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Healthcare Trust of America | 0: | 5:00 | 2: | 0: | 2:29 a.m |
| Farmland Partners | 0: | 0: | 3: | 0: | 3:00 |
Healthcare Trust of America currently has a consensus target price of $33.60, indicating a potential upside of 16.59%. Farmland Partners has a consensus target price of $15.25, indicating a potential upside of 10.99%. Given Healthcare Trust of America’s higher probable upside, analysts clearly believe Healthcare Trust of America is more favorable than Farmland Partners.
Summary:
Healthcare Trust of America beats Farmland Partners on 10 of the 17 factors compared between the two stocks.
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 universities and medical institutions, which translates to superior demographics, high-quality graduates, intellectual talent and job growth. The strategic markets HTA invests in supporting 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.
Farmland Partners Company Profile: (Get Rating)
Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this release, the Company owns approximately 155,000 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for US federal income tax purposes, beginning with the taxable year ended December 31, 2014.
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