Healthpeak Properties (NYSE:PEAK) & Lexington Realty Trust (NYSE:LXP) Financial Contrast

Healthpeak Properties (NYSE:PEAK) and Lexington Realty Trust (NYSE:LXP) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Healthpeak Properties and Lexington Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Healthpeak Properties 1 4 7 0 2.50
Lexington Realty Trust 0 0 3 0 3.00

Healthpeak Properties presently has a consensus price target of $35.39, suggesting a potential upside of 4.12%. Lexington Realty Trust has a consensus price target of $14.83, suggesting a potential upside of 2.37%. Given Healthpeak Properties’ higher probable upside, equities research analysts plainly believe Healthpeak Properties is more favorable than Lexington Realty Trust.

Profitability

This table compares Healthpeak Properties and Lexington Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Healthpeak Properties 25.71% -0.07% -0.03%
Lexington Realty Trust 76.04% 13.71% 7.29%

Volatility and Risk

Healthpeak Properties has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Lexington Realty Trust has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Dividends

Healthpeak Properties pays an annual dividend of $1.20 per share and has a dividend yield of 3.5%. Lexington Realty Trust pays an annual dividend of $0.43 per share and has a dividend yield of 3.0%. Healthpeak Properties pays out 73.2% of its earnings in the form of a dividend. Lexington Realty Trust pays out 56.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lexington Realty Trust has raised its dividend for 2 consecutive years.

Institutional & Insider Ownership

92.8% of Healthpeak Properties shares are owned by institutional investors. Comparatively, 99.9% of Lexington Realty Trust shares are owned by institutional investors. 0.2% of Healthpeak Properties shares are owned by insiders. Comparatively, 2.1% of Lexington Realty Trust shares are owned 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.

Valuation & Earnings

This table compares Healthpeak Properties and Lexington Realty Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Healthpeak Properties $1.64 billion 11.14 $413.56 million $1.64 20.73
Lexington Realty Trust $330.45 million 12.18 $183.30 million $0.76 19.07

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

Summary

Lexington Realty Trust beats Healthpeak Properties on 9 of the 17 factors compared between the two stocks.

Healthpeak Properties Company Profile

Healthpeak Properties, Inc. is a real estate investment trust, which invests primarily in real estate serving the healthcare industry in the United States. It acquires, develops, leases, sells, and manages healthcare real estate and provides mortgage and other financing to healthcare providers. It operates through the following business segments: Life Science, Medical Office and Continuing Care Retirement Community(CCRC). The Life Science segment contains laboratory and office space primarily for biotechnology, medical device and pharmaceutical companies, scientific research institutions, government agencies, and other organizations involved in the life science industry. The Medical Office segment includes pharmacies, hospital ancillary service space, and outpatient services such as diagnostic centers, rehabilitation clinics, and day-surgery operating rooms. The CCRC segment include independent living, assisted living, and skilled nursing units to provide a continuum of care in an integrated campus. The company was founded in March 1985 and is headquartered in Denver, CO.

Lexington Realty Trust Company Profile

Lexington Realty Trust is a real estate investment trust, which engages in financing, acquisition, and ownership of portfolio of single-tenant commercial properties. It also provides investment advisory and asset management services. The company was founded by E. Robert Roskind in October 1993 and is headquartered in New York, NY.

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