Reviewing Universal Health Realty Income Trust (NYSE:UHT) & Host Hotels & Resorts (NASDAQ:HST)

Universal Health Realty Income Trust (NYSE:UHT) and Host Hotels & Resorts (NASDAQ:HST) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares Universal Health Realty Income Trust and Host Hotels & Resorts’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Realty Income Trust	$97.49 million	5.33	$15.40 million	$1.17	32.12
Host Hotels & Resorts	$5.31 billion	2.44	$740.00 million	$1.02	18.06

Host Hotels & Resorts has higher revenue and earnings than Universal Health Realty Income Trust. Host Hotels & Resorts is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Universal Health Realty Income Trust and Host Hotels & Resorts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Realty Income Trust	0	0	0	0	N/A
Host Hotels & Resorts	1	3	10	0	2.64

Host Hotels & Resorts has a consensus target price of $21.29, suggesting a potential upside of 15.56%. Given Host Hotels & Resorts’ higher possible upside, analysts clearly believe Host Hotels & Resorts is more favorable than Universal Health Realty Income Trust.

Volatility and Risk

Universal Health Realty Income Trust has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Host Hotels & Resorts has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

64.7% of Universal Health Realty Income Trust shares are owned by institutional investors. Comparatively, 98.5% of Host Hotels & Resorts shares are owned by institutional investors. 2.1% of Universal Health Realty Income Trust shares are owned by company insiders. Comparatively, 1.3% of Host Hotels & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Universal Health Realty Income Trust pays an annual dividend of $2.90 per share and has a dividend yield of 7.7%. Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. Universal Health Realty Income Trust pays out 247.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Host Hotels & Resorts pays out 78.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust has increased its dividend for 1 consecutive years and Host Hotels & Resorts has increased its dividend for 1 consecutive years.

Profitability

This table compares Universal Health Realty Income Trust and Host Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Realty Income Trust	16.66%	7.88%	2.70%
Host Hotels & Resorts	13.35%	10.59%	5.84%

Summary

Host Hotels & Resorts beats Universal Health Realty Income Trust on 9 of the 15 factors compared between the two stocks.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 72 properties in the United States and five properties internationally totaling approximately 42,000 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott, Ritz-Carlton, Westin, Sheraton, W, St. Regis, The Luxury Collection, Hyatt, Fairmont, Hilton, Four Seasons, Swissôtel, ibis and Novotel, as well as independent brands.