Comparing Healthcare Realty Trust (NYSE:HR) and Franklin Street Properties (NYSE:FSP)

Healthcare Realty Trust (NYSE:HR – Get Free Report) and Franklin Street Properties (NYSE:FSP – Get Free Report) are both finance companies, but determining which one is the superior stock requires a detailed comparison. This analysis will focus on several factors including analyst recommendations, dividend performance, institutional ownership, earnings, profitability, risk, and valuation.

Institutional and Insider Ownership

An important aspect of any company is its ownership structure. Currently, 61.4% of the shares of Franklin Street Properties are held by institutional investors. On the other hand, only 0.6% of shares in Healthcare Realty Trust are owned by company insiders, while insiders hold 6.2% of Franklin Street Properties. High institutional ownership often indicates that significant investors, such as hedge funds and endowments, have confidence in the company’s long-term growth potential.

Dividends

Looking at their dividend offerings, Healthcare Realty Trust has an annual dividend of $1.24 per share, resulting in a dividend yield of 7.1%. In contrast, Franklin Street Properties offers an annual dividend of $0.04 per share, equating to a yield of 1.9%. Healthcare Realty Trust distributes approximately -78.5% of its earnings as dividends, whereas Franklin Street Properties pays out about -10.3%. Given these figures, Healthcare Realty Trust is clearly the more attractive option for income-seeking investors due to its higher yield and more manageable payout ratio.

Earnings and Valuation

Analyzing earnings and valuations provides insight into financial health. Below is a comparison of key financial metrics:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.29 billion	4.81	-$278.26 million	($1.58)	-11.08
Franklin Street Properties	$126.51 million	1.70	-$48.11 million	($0.39)	-5.33

Although Franklin Street Properties reports lower overall revenue, it shows comparatively better earnings outcomes than Healthcare Realty Trust. Interestingly, Healthcare Realty Trust is currently trading at a lower price-to-earnings ratio compared to Franklin Street Properties, suggesting it may be the more affordable option at this time.

Risk and Volatility

Great analysis should also consider risk levels. Healthcare Realty Trust has a beta of 0.93, indicating its share price is approximately 7% less volatile than the broader S&P 500. Conversely, Franklin Street Properties boasts a lower beta of 0.82, pointing to an 18% reduction in volatility relative to the S&P 500. This information can help potential investors align their choices with their risk tolerance levels.

Analyst Ratings

Analyzing recent ratings from analysts adds another layer of understanding. Below is a summary derived from MarketBeat.com:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	1	4	1	0	2.00
Franklin Street Properties	0	0	0	0	0.00

Healthcare Realty Trust has a consensus price target of $17.17, indicating a slight downside of 1.90%. Given the strength of Healthcare Realty Trust’s consensus rating and comparatively higher upside, analysts seem to favor this company over Franklin Street Properties.

Profitability

Profitability metrics can vary widely among companies. Here’s a comparison of net margins, return on equity, and return on assets:

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-45.63%	-9.42%	-4.90%
Franklin Street Properties	-32.11%	-5.88%	-3.87%

In these profitability indicators, Franklin Street Properties shows less negative performance compared to Healthcare Realty Trust, which may appeal to some investors.

About Healthcare Realty Trust

(Get Free Report)

Healthcare Realty Trust is a real estate investment trust (REIT) focused on owning and operating outpatient medical buildings primarily located around significant hospital campuses. The organization enhances its portfolio through strategic property acquisitions and development efforts. As the first and largest REIT to specialize in this sector, Healthcare Realty Trust manages over 700 properties, amounting to more than 40 million square feet, across 15 growing markets.

About Franklin Street Properties

(Get Free Report)

Based in Wakefield, Massachusetts, Franklin Street Properties Corp. specializes in infill and central business district (CBD) office properties throughout the U.S. Sunbelt and Mountain West regions, along with select opportunistic locations. The firm concentrates on value-driven investments aimed at facilitating long-term growth and income generation. Franklin Street Properties operates in a manner aimed at qualifying as a real estate investment trust (REIT) for federal tax purposes.

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