Critical Analysis: Stag Industrial (NYSE:STAG) vs. American Healthcare REIT (NYSE:AHR)
by Renee Jackson · The Cerbat GemStag Industrial (NYSE:STAG – Get Free Report) and American Healthcare REIT (NYSE:AHR – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Institutional and Insider Ownership
88.7% of Stag Industrial shares are owned by institutional investors. Comparatively, 16.7% of American Healthcare REIT shares are owned by institutional investors. 1.1% of Stag Industrial shares are owned by insiders. Comparatively, 0.9% of American Healthcare REIT shares are owned by 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.
Profitability
This table compares Stag Industrial and American Healthcare REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stag Industrial | 32.35% | 7.68% | 3.94% |
| American Healthcare REIT | 3.09% | 2.57% | 1.46% |
Analyst Recommendations
This is a summary of recent ratings for Stag Industrial and American Healthcare REIT, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stag Industrial | 1 | 6 | 3 | 0 | 2.20 |
| American Healthcare REIT | 0 | 3 | 9 | 1 | 2.85 |
Stag Industrial presently has a consensus price target of $39.50, indicating a potential upside of 8.12%. American Healthcare REIT has a consensus price target of $53.67, indicating a potential upside of 11.63%. Given American Healthcare REIT’s stronger consensus rating and higher probable upside, analysts clearly believe American Healthcare REIT is more favorable than Stag Industrial.
Risk & Volatility
Stag Industrial has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, American Healthcare REIT has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.
Dividends
Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.2%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Stag Industrial pays out 106.2% 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. Stag Industrial has raised its dividend for 7 consecutive years. Stag Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Stag Industrial 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 | |
| Stag Industrial | $845.18 million | 8.26 | $273.52 million | $1.46 | 25.02 |
| American Healthcare REIT | $2.26 billion | 4.00 | $69.81 million | $0.41 | 117.26 |
Stag Industrial has higher earnings, but lower revenue than American Healthcare REIT. Stag Industrial 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
Stag Industrial beats American Healthcare REIT on 11 of the 18 factors compared between the two stocks.
About Stag Industrial
STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.
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.