American Healthcare REIT (NYSE:AHR) and Postal Realty Trust (NYSE:PSTL) Financial Review

American Healthcare REIT (NYSE:AHR) and Postal Realty Trust (NYSE:PSTL) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares American Healthcare REIT and Postal Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Healthcare REIT	$2.07 billion	3.60	-$37.81 million	($0.22)	-201.25
Postal Realty Trust	$76.37 million	4.91	$6.60 million	$0.38	40.13

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for American Healthcare REIT and Postal Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Healthcare REIT	0	1	10	2	3.08
Postal Realty Trust	0	1	2	0	2.67

American Healthcare REIT presently has a consensus price target of $45.00, suggesting a potential upside of 1.64%. Postal Realty Trust has a consensus price target of $17.38, suggesting a potential upside of 13.93%. Given Postal Realty Trust’s higher possible upside, analysts plainly believe Postal Realty Trust is more favorable than American Healthcare REIT.

Risk & Volatility

American Healthcare REIT has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Postal Realty Trust has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Dividends

American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Postal Realty Trust pays an annual dividend of $0.97 per share and has a dividend yield of 6.4%. American Healthcare REIT pays out -454.5% of its earnings in the form of a dividend. Postal Realty Trust pays out 255.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust has increased its dividend for 3 consecutive years. Postal Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares American Healthcare REIT and Postal Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Healthcare REIT	-1.56%	-1.43%	-0.74%
Postal Realty Trust	13.03%	3.56%	1.73%

Insider and Institutional Ownership

16.7% of American Healthcare REIT shares are owned by institutional investors. Comparatively, 57.9% of Postal Realty Trust shares are owned by institutional investors. 0.9% of American Healthcare REIT shares are owned by insiders. Comparatively, 13.7% of Postal Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Postal Realty Trust beats American Healthcare REIT on 12 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 Postal Realty Trust

Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.