Head-To-Head Review: Diversified Healthcare Trust (NASDAQ:DHCNL) versus National Health Investors (NYSE:NHI)

National Health Investors (NYSE:NHI) and Diversified Healthcare Trust (NASDAQ:DHCNL) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Valuation & Earnings

This table compares National Health Investors and Diversified Healthcare Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Health Investors	$375.63 million	9.53	$142.18 million	$3.46	21.07
Diversified Healthcare Trust	N/A	N/A	N/A	N/A	N/A

National Health Investors has higher revenue and earnings than Diversified Healthcare Trust.

Profitability

This table compares National Health Investors and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Health Investors	38.56%	10.89%	5.88%
Diversified Healthcare Trust	N/A	N/A	N/A

Institutional & Insider Ownership

62.5% of National Health Investors shares are owned by institutional investors. 2.7% of National Health Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for National Health Investors and Diversified Healthcare Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Health Investors	1	2	5	0	2.50
Diversified Healthcare Trust	0	0	0	0	0.00

National Health Investors currently has a consensus target price of $83.86, suggesting a potential upside of 15.01%. Given National Health Investors’ stronger consensus rating and higher probable upside, research analysts clearly believe National Health Investors is more favorable than Diversified Healthcare Trust.

Summary

National Health Investors beats Diversified Healthcare Trust on 9 of the 9 factors compared between the two stocks.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.