Alexandria Real Estate Equities (NYSE:ARE) versus Healthpeak Properties (NYSE:DOC) Critical Analysis

Healthpeak Properties (NYSE:DOC) and Alexandria Real Estate Equities (NYSE:ARE) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares Healthpeak Properties and Alexandria Real Estate Equities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	12.32%	4.04%	1.76%
Alexandria Real Estate Equities	-51.81%	-7.52%	-4.18%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Healthpeak Properties and Alexandria Real Estate Equities, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	0	14	4	0	2.22
Alexandria Real Estate Equities	4	10	2	0	1.88

Healthpeak Properties presently has a consensus target price of $21.47, suggesting a potential upside of 5.77%. Alexandria Real Estate Equities has a consensus target price of $49.79, suggesting a potential upside of 11.21%. Given Alexandria Real Estate Equities’ higher probable upside, analysts plainly believe Alexandria Real Estate Equities is more favorable than Healthpeak Properties.

Volatility and Risk

Healthpeak Properties has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares Healthpeak Properties and Alexandria Real Estate Equities”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$2.82 billion	4.96	$71.35 million	$0.54	37.58
Alexandria Real Estate Equities	$2.68 billion	2.91	-$1.43 billion	($8.42)	-5.32

Healthpeak Properties has higher revenue and earnings than Alexandria Real Estate Equities. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than Healthpeak Properties, indicating that it is currently the more affordable of the two stocks.

Dividends

Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 6.0%. Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 6.4%. Healthpeak Properties pays out 225.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities pays out -34.2% of its earnings in the form of a dividend. Alexandria Real Estate Equities has increased its dividend for 15 consecutive years. Alexandria Real Estate Equities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

93.6% of Healthpeak Properties shares are held by institutional investors. Comparatively, 96.5% of Alexandria Real Estate Equities shares are held by institutional investors. 0.2% of Healthpeak Properties shares are held by insiders. Comparatively, 1.4% of Alexandria Real Estate Equities shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Healthpeak Properties beats Alexandria Real Estate Equities on 10 of the 17 factors compared between the two stocks.

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.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.