Omega Healthcare Investors (NYSE:OHI) versus Medalist Diversified REIT (NASDAQ:MDRR) Head to Head Analysis

Medalist Diversified REIT (NASDAQ:MDRR) and Omega Healthcare Investors (NYSE:OHI) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Profitability

This table compares Medalist Diversified REIT and Omega Healthcare Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medalist Diversified REIT	-16.11%	-18.80%	-3.71%
Omega Healthcare Investors	33.52%	8.61%	3.60%

Risk and Volatility

Medalist Diversified REIT has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Medalist Diversified REIT and Omega Healthcare Investors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medalist Diversified REIT	0	0	0	0	N/A
Omega Healthcare Investors	0	7	3	0	2.30

Omega Healthcare Investors has a consensus price target of $35.78, indicating a potential downside of 11.57%. Given Omega Healthcare Investors’ higher possible upside, analysts clearly believe Omega Healthcare Investors is more favorable than Medalist Diversified REIT.

Institutional & Insider Ownership

17.4% of Medalist Diversified REIT shares are owned by institutional investors. Comparatively, 65.3% of Omega Healthcare Investors shares are owned by institutional investors. 16.9% of Medalist Diversified REIT shares are owned by insiders. Comparatively, 1.4% of Omega Healthcare Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Medalist Diversified REIT and Omega Healthcare Investors”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medalist Diversified REIT	$10.17 million	1.34	-$4.57 million	($1.84)	-6.63
Omega Healthcare Investors	$977.40 million	10.22	$242.18 million	$1.11	36.43

Omega Healthcare Investors has higher revenue and earnings than Medalist Diversified REIT. Medalist Diversified REIT is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, indicating that it is currently the more affordable of the two stocks.

Dividends

Medalist Diversified REIT pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 6.6%. Medalist Diversified REIT pays out -10.9% of its earnings in the form of a dividend. Omega Healthcare Investors pays out 241.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Omega Healthcare Investors beats Medalist Diversified REIT on 13 of the 15 factors compared between the two stocks.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.

About Omega Healthcare Investors

Omega is a REIT that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the U.S., as well as in the U.K.