Critical Review: Summit Industrial Income REIT (OTCMKTS:SMMCF) vs. Healthcare Realty Trust (NYSE:HR)

Summit Industrial Income REIT (OTCMKTS:SMMCF) and Healthcare Realty Trust (NYSE:HR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Dividends

Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.4%. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Healthcare Realty Trust pays out -78.5% 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. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

0.1% of Summit Industrial Income REIT shares are owned by institutional investors. 0.6% of Healthcare Realty Trust shares are owned by company 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 Summit Industrial Income REIT and Healthcare Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Industrial Income REIT	N/A	N/A	N/A
Healthcare Realty Trust	-45.63%	-9.42%	-4.90%

Analyst Ratings

This is a summary of current ratings and target prices for Summit Industrial Income REIT and Healthcare Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Industrial Income REIT	0	0	0	0	0.00
Healthcare Realty Trust	2	5	0	0	1.71

Healthcare Realty Trust has a consensus target price of $17.14, suggesting a potential upside of 2.14%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Healthcare Realty Trust is more favorable than Summit Industrial Income REIT.

Earnings & Valuation

This table compares Summit Industrial Income REIT and Healthcare Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50
Healthcare Realty Trust	$1.34 billion	4.43	-$278.26 million	($1.58)	-10.62

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

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.

About Healthcare Realty Trust

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.