American Healthcare REIT (NYSE:AHR – Get Free Report) and Rexford Industrial Realty (NYSE:REXR – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations for American Healthcare REIT and Rexford Industrial Realty, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Healthcare REIT | 0 | 2 | 10 | 1 | 2.92 |
| Rexford Industrial Realty | 1 | 8 | 4 | 0 | 2.23 |
American Healthcare REIT presently has a consensus price target of $55.64, suggesting a potential upside of 13.40%. Rexford Industrial Realty has a consensus price target of $41.69, suggesting a potential upside of 17.58%. Given Rexford Industrial Realty’s higher possible upside, analysts clearly believe Rexford Industrial Realty is more favorable than American Healthcare REIT.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Healthcare REIT | $2.26 billion | 4.18 | $69.81 million | $0.58 | 84.59 |
| Rexford Industrial Realty | $1.00 billion | 7.98 | $212.03 million | $0.93 | 38.13 |
Rexford Industrial Realty has lower revenue, but higher earnings than American Healthcare REIT. Rexford Industrial Realty is trading at a lower price-to-earnings ratio than American Healthcare REIT, indicating that it is currently the more affordable of the two stocks.
Dividends
American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. Rexford Industrial Realty pays an annual dividend of $1.74 per share and has a dividend yield of 4.9%. American Healthcare REIT pays out 172.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out 187.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty has raised its dividend for 4 consecutive years. Rexford Industrial Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
American Healthcare REIT has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
Profitability
This table compares American Healthcare REIT and Rexford Industrial Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Healthcare REIT | 4.23% | 3.33% | 1.98% |
| Rexford Industrial Realty | 23.25% | 2.64% | 1.82% |
Institutional and Insider Ownership
16.7% of American Healthcare REIT shares are owned by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are owned by institutional investors. 0.8% of American Healthcare REIT shares are owned by insiders. Comparatively, 1.8% of Rexford Industrial Realty shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Rexford Industrial Realty beats American Healthcare REIT on 10 of the 18 factors compared between the two stocks.
About American Healthcare REIT
Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.
About Rexford Industrial Realty
Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.
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