American Healthcare REIT (NYSE:AHR) versus Transcontinental Realty Investors (NYSE:TCI) Critical Review

Transcontinental Realty Investors (NYSE:TCI) and American Healthcare REIT (NYSE:AHR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	6.55%	0.38%	0.30%
American Healthcare REIT	-1.84%	-1.87%	-0.80%

Valuation & Earnings

This table compares Transcontinental Realty Investors and American Healthcare REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$46.33 million	5.56	$5.94 million	$0.37	80.57
American Healthcare REIT	$2.01 billion	2.16	-$71.47 million	($0.48)	-59.21

Transcontinental Realty Investors has higher earnings, but lower revenue than American Healthcare REIT. American Healthcare REIT is trading at a lower price-to-earnings ratio than Transcontinental Realty Investors, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Transcontinental Realty Investors and American Healthcare REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	0	0	0	0	0.00
American Healthcare REIT	0	1	7	0	2.88

American Healthcare REIT has a consensus price target of $26.00, indicating a potential downside of 8.52%. Given American Healthcare REIT’s stronger consensus rating and higher possible upside, analysts clearly believe American Healthcare REIT is more favorable than Transcontinental Realty Investors.

Institutional & Insider Ownership

16.7% of American Healthcare REIT shares are owned by institutional investors. 86.2% of Transcontinental Realty Investors shares are owned by company insiders. Comparatively, 1.0% of American Healthcare REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Transcontinental Realty Investors beats American Healthcare REIT on 8 of the 13 factors compared between the two stocks.

About Transcontinental Realty Investors

Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables.

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.