American Healthcare REIT (NYSE:AHR) versus Dynex Capital (NYSE:DX) Financial Analysis

American Healthcare REIT (NYSE:AHR) and Dynex Capital (NYSE:DX) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a summary of recent recommendations for American Healthcare REIT and Dynex Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Healthcare REIT	0	1	7	0	2.88
Dynex Capital	0	2	4	0	2.67

American Healthcare REIT presently has a consensus target price of $25.13, suggesting a potential downside of 11.38%. Dynex Capital has a consensus target price of $13.35, suggesting a potential upside of 6.93%. Given Dynex Capital’s higher possible upside, analysts clearly believe Dynex Capital is more favorable than American Healthcare REIT.

Earnings and Valuation

This table compares American Healthcare REIT and Dynex Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Healthcare REIT	$1.87 billion	2.00	-$71.47 million	($0.48)	-59.06
Dynex Capital	$207.52 million	4.77	-$6.13 million	$1.26	9.91

Dynex Capital has lower revenue, but higher earnings than American Healthcare REIT. American Healthcare REIT is trading at a lower price-to-earnings ratio than Dynex Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Healthcare REIT and Dynex Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Healthcare REIT	-1.84%	-1.87%	-0.80%
Dynex Capital	28.83%	-4.80%	-0.63%

Dividends

American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Dynex Capital pays an annual dividend of $1.56 per share and has a dividend yield of 12.5%. American Healthcare REIT pays out -208.3% of its earnings in the form of a dividend. Dynex Capital pays out 123.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

16.7% of American Healthcare REIT shares are owned by institutional investors. Comparatively, 38.3% of Dynex Capital shares are owned by institutional investors. 1.0% of American Healthcare REIT shares are owned by company insiders. Comparatively, 2.5% of Dynex Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Dynex Capital beats American Healthcare REIT on 10 of the 15 factors compared between the two stocks.

About American Healthcare REIT

Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.

About Dynex Capital

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.