Analyzing Universal Health Realty Income Trust (NYSE:UHT) and Centerspace (NYSE:CSR)

Centerspace (NYSE:CSR) and Universal Health Realty Income Trust (NYSE:UHT) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Dividends

Centerspace pays an annual dividend of $3.00 per share and has a dividend yield of 4.1%. Universal Health Realty Income Trust pays an annual dividend of $2.92 per share and has a dividend yield of 7.2%. Centerspace pays out -186.3% of its earnings in the form of a dividend. Universal Health Realty Income Trust pays out 222.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Centerspace and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerspace	-5.57%	-1.72%	-0.76%
Universal Health Realty Income Trust	18.41%	9.44%	3.07%

Analyst Ratings

This is a summary of current ratings and price targets for Centerspace and Universal Health Realty Income Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	3	2	0	2.40
Universal Health Realty Income Trust	0	0	0	0	0.00

Centerspace currently has a consensus target price of $76.00, suggesting a potential upside of 5.00%. Given Centerspace’s stronger consensus rating and higher possible upside, equities analysts plainly believe Centerspace is more favorable than Universal Health Realty Income Trust.

Valuation & Earnings

This table compares Centerspace and Universal Health Realty Income Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerspace	$258.64 million	4.64	$41.97 million	($1.61)	-44.96
Universal Health Realty Income Trust	$95.57 million	5.90	$15.40 million	$1.31	31.10

Centerspace has higher revenue and earnings than Universal Health Realty Income Trust. Centerspace is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

79.0% of Centerspace shares are owned by institutional investors. Comparatively, 64.7% of Universal Health Realty Income Trust shares are owned by institutional investors. 0.9% of Centerspace shares are owned by insiders. Comparatively, 2.2% of Universal Health Realty Income Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Centerspace has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.