Financial Analysis: Sila Realty Trust (NYSE:SILA) and American Healthcare REIT (NYSE:AHR)

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

Risk & Volatility

Sila Realty Trust has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, American Healthcare REIT has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Dividends

Sila Realty Trust pays an annual dividend of $1.60 per share and has a dividend yield of 5.3%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. Sila Realty Trust pays out 275.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Healthcare REIT pays out 243.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sila Realty Trust	16.36%	2.39%	1.57%
American Healthcare REIT	3.09%	2.57%	1.46%

Institutional & Insider Ownership

16.7% of American Healthcare REIT shares are held by institutional investors. 0.8% of Sila Realty Trust shares are held by company insiders. Comparatively, 0.8% of American Healthcare REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Sila Realty Trust and American Healthcare REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sila Realty Trust	0	6	0	0	2.00
American Healthcare REIT	0	3	9	1	2.85

Sila Realty Trust currently has a consensus price target of $29.00, suggesting a potential downside of 4.72%. American Healthcare REIT has a consensus price target of $55.18, suggesting a potential upside of 11.08%. Given American Healthcare REIT’s stronger consensus rating and higher probable upside, analysts plainly believe American Healthcare REIT is more favorable than Sila Realty Trust.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sila Realty Trust	$197.54 million	8.51	$33.12 million	$0.58	52.48
American Healthcare REIT	$2.26 billion	4.13	$69.81 million	$0.41	121.17

American Healthcare REIT has higher revenue and earnings than Sila Realty Trust. Sila Realty Trust 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.

Summary

American Healthcare REIT beats Sila Realty Trust on 10 of the 17 factors compared between the two stocks.

About Sila Realty Trust

Sila Realty Trust, Inc., headquartered in Tampa, Florida, is a net lease real estate investment trust with a strategic focus on investing in the large, growing, and resilient healthcare sector. The Company invests in high quality healthcare facilities along the continuum of care, which, we believe, generate predictable, durable, and growing income streams. Our portfolio comprises high quality tenants in geographically diverse facilities, which are positioned to capitalize on the dynamic delivery of healthcare to patients. As of June 30, 2024, the Company owned 137 real estate properties and two undeveloped land parcels located in 64 markets across the U.S.

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.