Head to Head Survey: Healthcare Realty Trust (NYSE:HR) and Public Storage (NYSE:PSA)

Healthcare Realty Trust (NYSE:HR) and Public Storage (NYSE:PSA) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.25 billion	4.63	-$278.26 million	($1.78)	-9.27
Public Storage	$4.70 billion	10.96	$2.15 billion	$10.63	27.59

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

Institutional & Insider Ownership

78.8% of Public Storage shares are owned by institutional investors. 0.6% of Healthcare Realty Trust shares are owned by insiders. Comparatively, 11.1% of Public Storage shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Healthcare Realty Trust and Public Storage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	1	3	1	0	2.00
Public Storage	0	7	5	2	2.64

Healthcare Realty Trust currently has a consensus target price of $17.00, indicating a potential upside of 3.06%. Public Storage has a consensus target price of $339.69, indicating a potential upside of 15.81%. Given Public Storage’s stronger consensus rating and higher probable upside, analysts clearly believe Public Storage is more favorable than Healthcare Realty Trust.

Risk and Volatility

Healthcare Realty Trust has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Public Storage has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares Healthcare Realty Trust and Public Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-51.60%	-11.20%	-5.69%
Public Storage	40.54%	34.07%	9.60%

Dividends

Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.5%. Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 4.1%. Healthcare Realty Trust pays out -69.7% of its earnings in the form of a dividend. Public Storage pays out 112.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Public Storage beats Healthcare Realty Trust on 14 of the 17 factors compared between the two stocks.

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.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.