Douglas Emmett (NYSE:DEI) vs. Universal Health Realty Income Trust (NYSE:UHT) Critical Survey

Universal Health Realty Income Trust (NYSE:UHT) and Douglas Emmett (NYSE:DEI) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Universal Health Realty Income Trust pays an annual dividend of $2.92 per share and has a dividend yield of 7.2%. Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 4.1%. Universal Health Realty Income Trust pays out 224.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Douglas Emmett pays out -245.2% of its earnings in the form of a dividend.

Institutional and Insider Ownership

64.7% of Universal Health Realty Income Trust shares are owned by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are owned by institutional investors. 2.2% of Universal Health Realty Income Trust shares are owned by company insiders. Comparatively, 14.7% of Douglas Emmett shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Universal Health Realty Income Trust has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Universal Health Realty Income Trust and Douglas Emmett, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Realty Income Trust	0	0	0	0	N/A
Douglas Emmett	0	6	1	0	2.14

Douglas Emmett has a consensus target price of $16.29, indicating a potential downside of 11.30%. Given Douglas Emmett’s higher probable upside, analysts clearly believe Douglas Emmett is more favorable than Universal Health Realty Income Trust.

Valuation and Earnings

This table compares Universal Health Realty Income Trust and Douglas Emmett”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Realty Income Trust	$95.57 million	5.85	$15.40 million	$1.30	31.05
Douglas Emmett	$1.01 billion	3.06	-$42.71 million	($0.31)	-59.23

Universal Health Realty Income Trust has higher earnings, but lower revenue than Douglas Emmett. Douglas Emmett is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Universal Health Realty Income Trust and Douglas Emmett’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Realty Income Trust	18.33%	9.04%	3.02%
Douglas Emmett	-3.55%	-0.88%	-0.35%

Summary

Universal Health Realty Income Trust beats Douglas Emmett on 8 of the 15 factors compared between the two stocks.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.