Head to Head Review: Summit Industrial Income REIT (OTCMKTS:SMMCF) and Healthcare Realty Trust (NYSE:HR)

Healthcare Realty Trust (NYSE:HR) and Summit Industrial Income REIT (OTCMKTS:SMMCF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Insider and Institutional Ownership

0.1% of Summit Industrial Income REIT shares are held by institutional investors. 0.6% of Healthcare Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Healthcare Realty Trust and Summit Industrial Income REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-45.63%	-9.42%	-4.90%
Summit Industrial Income REIT	N/A	N/A	N/A

Dividends

Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.4%. Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Healthcare Realty Trust pays out -78.5% of its earnings in the form of a dividend. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Healthcare Realty Trust and Summit Industrial Income REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	2	5	0	0	1.71
Summit Industrial Income REIT	0	0	0	0	0.00

Healthcare Realty Trust currently has a consensus price target of $17.14, suggesting a potential upside of 2.14%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, research analysts clearly believe Healthcare Realty Trust is more favorable than Summit Industrial Income REIT.

Valuation & Earnings

This table compares Healthcare Realty Trust and Summit Industrial Income REIT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.34 billion	4.43	-$278.26 million	($1.58)	-10.62
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50

Summit Industrial Income REIT has lower revenue, but higher earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Summit Industrial Income REIT, indicating that it is currently the more affordable of the two stocks.

About Healthcare Realty Trust

Healthcare Realty (NYSE: HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The Company selectively grows its portfolio through property acquisition and development. As the first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty's portfolio includes more than 700 properties totaling over 40 million square feet concentrated in 15 growth markets.

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.