Equity LifeStyle Properties (NYSE:ELS – Get Free Report) and Diversified Healthcare Trust (NASDAQ:DHC – Get Free Report) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Dividends
Equity LifeStyle Properties pays an annual dividend of $1.91 per share and has a dividend yield of 2.7%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Equity LifeStyle Properties pays out 104.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -2.7% of its earnings in the form of a dividend. Equity LifeStyle Properties has raised its dividend for 20 consecutive years. Equity LifeStyle Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of current ratings for Equity LifeStyle Properties and Diversified Healthcare Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equity LifeStyle Properties | 0 | 6 | 3 | 1 | 2.50 |
| Diversified Healthcare Trust | 1 | 1 | 1 | 0 | 2.00 |
Risk and Volatility
Equity LifeStyle Properties has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.22, suggesting that its share price is 122% more volatile than the S&P 500.
Profitability
This table compares Equity LifeStyle Properties and Diversified Healthcare Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Equity LifeStyle Properties | 23.56% | 23.71% | 6.34% |
| Diversified Healthcare Trust | -24.14% | -15.36% | -6.51% |
Earnings & Valuation
This table compares Equity LifeStyle Properties and Diversified Healthcare Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Equity LifeStyle Properties | $1.43 billion | 9.12 | $314.21 million | $1.83 | 38.22 |
| Diversified Healthcare Trust | $1.41 billion | 0.63 | -$293.57 million | ($1.48) | -2.50 |
Equity LifeStyle Properties has higher revenue and earnings than Diversified Healthcare Trust. Diversified Healthcare Trust is trading at a lower price-to-earnings ratio than Equity LifeStyle Properties, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
97.2% of Equity LifeStyle Properties shares are owned by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are owned by institutional investors. 1.4% of Equity LifeStyle Properties shares are owned by company insiders. Comparatively, 10.0% of Diversified Healthcare Trust 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.
Summary
Equity LifeStyle Properties beats Diversified Healthcare Trust on 14 of the 18 factors compared between the two stocks.
About Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago. As of January 29, 2024, we own or have an interest in 451 properties in 35 states and British Columbia consisting of 172,465 sites.
About Diversified Healthcare Trust
DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2023, DHC's approximately $7.2 billion portfolio included 371 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 8.6 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA.
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