UDR (NYSE:UDR) & Diversified Healthcare Trust (NASDAQ:DHC) Head-To-Head Analysis

UDR (NYSE:UDR) and Diversified Healthcare Trust (NASDAQ:DHC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Valuation and Earnings

This table compares UDR and Diversified Healthcare Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UDR	$1.68 billion	8.01	$89.58 million	$0.35	116.13
Diversified Healthcare Trust	$1.51 billion	0.50	-$293.57 million	($1.22)	-2.57

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

Volatility & Risk

UDR has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500.

Dividends

UDR pays an annual dividend of $1.72 per share and has a dividend yield of 4.2%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.3%. UDR pays out 491.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -3.3% of its earnings in the form of a dividend. UDR has increased its dividend for 15 consecutive years. UDR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for UDR and Diversified Healthcare Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UDR	1	9	7	0	2.35
Diversified Healthcare Trust	1	1	0	1	2.33

UDR presently has a consensus target price of $46.69, indicating a potential upside of 14.87%. Diversified Healthcare Trust has a consensus target price of $3.75, indicating a potential upside of 19.43%. Given Diversified Healthcare Trust’s higher possible upside, analysts plainly believe Diversified Healthcare Trust is more favorable than UDR.

Institutional and Insider Ownership

97.8% of UDR shares are held by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are held by institutional investors. 3.4% of UDR shares are held by insiders. Comparatively, 1.4% of Diversified Healthcare Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares UDR and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UDR	5.36%	2.65%	0.86%
Diversified Healthcare Trust	-26.09%	-17.55%	-7.20%

Summary

UDR beats Diversified Healthcare Trust on 14 of the 18 factors compared between the two stocks.

About UDR

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.

About Diversified Healthcare Trust

Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. The SHOP segment manages senior living communities that offers short term and long term residential care, and other services for residents where it pay fees to the operator to manage the communities for its account. The company was founded on December 16, 1998 and is headquartered in Newton, MA.