Analyzing National Health Investors (NHI) and UMH PROPERTIES/SH SH (UMH)

National Health Investors (NYSE:NHI) and UMH PROPERTIES/SH SH (NYSE:UMH) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Dividends

National Health Investors pays an annual dividend of $4.00 per share and has a dividend yield of 5.5%. UMH PROPERTIES/SH SH pays an annual dividend of $0.72 per share and has a dividend yield of 4.9%. National Health Investors pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH PROPERTIES/SH SH pays out 101.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Health Investors has increased its dividend for 8 consecutive years. National Health Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

National Health Investors has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, UMH PROPERTIES/SH SH has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for National Health Investors and UMH PROPERTIES/SH SH, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Health Investors 1 5 4 0 2.30
UMH PROPERTIES/SH SH 0 0 3 0 3.00

National Health Investors currently has a consensus price target of $74.50, indicating a potential upside of 2.52%. UMH PROPERTIES/SH SH has a consensus price target of $17.17, indicating a potential upside of 15.91%. Given UMH PROPERTIES/SH SH’s stronger consensus rating and higher possible upside, analysts clearly believe UMH PROPERTIES/SH SH is more favorable than National Health Investors.

Earnings and Valuation

This table compares National Health Investors and UMH PROPERTIES/SH SH’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Health Investors $278.66 million 11.00 $159.36 million $5.33 13.63
UMH PROPERTIES/SH SH $112.65 million 4.87 $12.66 million $0.71 20.86

National Health Investors has higher revenue and earnings than UMH PROPERTIES/SH SH. National Health Investors is trading at a lower price-to-earnings ratio than UMH PROPERTIES/SH SH, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

68.7% of National Health Investors shares are owned by institutional investors. Comparatively, 58.0% of UMH PROPERTIES/SH SH shares are owned by institutional investors. 5.6% of National Health Investors shares are owned by company insiders. Comparatively, 10.9% of UMH PROPERTIES/SH SH shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares National Health Investors and UMH PROPERTIES/SH SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Health Investors 53.16% 11.49% 5.95%
UMH PROPERTIES/SH SH -8.17% -5.62% -1.19%

Summary

National Health Investors beats UMH PROPERTIES/SH SH on 12 of the 17 factors compared between the two stocks.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE: NHI) is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals.

About UMH PROPERTIES/SH SH

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 114 manufactured home communities containing approximately 20,600 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland. In addition, the Company owns a portfolio of REIT securities.

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