Head to Head Contrast: COPT Defense Properties (NYSE:CDP) vs. Universal Health Realty Income Trust (NYSE:UHT)

Universal Health Realty Income Trust (NYSE:UHT) and COPT Defense Properties (NYSE:CDP) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares Universal Health Realty Income Trust and COPT Defense Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Realty Income Trust	$95.57 million	6.06	$15.40 million	$1.31	31.92
COPT Defense Properties	$749.56 million	4.87	-$73.47 million	$1.22	26.56

Universal Health Realty Income Trust has higher earnings, but lower revenue than COPT Defense Properties. COPT Defense Properties 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.

Volatility and Risk

Universal Health Realty Income Trust has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, COPT Defense Properties has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Insider & Institutional Ownership

64.7% of Universal Health Realty Income Trust shares are held by institutional investors. 2.2% of Universal Health Realty Income Trust shares are held by company insiders. Comparatively, 1.1% of COPT Defense Properties shares are held by company 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.

Profitability

This table compares Universal Health Realty Income Trust and COPT Defense Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Realty Income Trust	18.41%	9.44%	3.07%
COPT Defense Properties	18.34%	8.99%	3.25%

Analyst Ratings

This is a breakdown of current ratings and price targets for Universal Health Realty Income Trust and COPT Defense Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Realty Income Trust	0	0	0	0	0.00
COPT Defense Properties	0	3	5	0	2.63

COPT Defense Properties has a consensus price target of $31.75, suggesting a potential downside of 2.01%. Given COPT Defense Properties’ stronger consensus rating and higher possible upside, analysts plainly believe COPT Defense Properties is more favorable than Universal Health Realty Income Trust.

Dividends

Universal Health Realty Income Trust pays an annual dividend of $2.92 per share and has a dividend yield of 7.0%. COPT Defense Properties pays an annual dividend of $1.18 per share and has a dividend yield of 3.6%. 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. COPT Defense Properties pays out 96.7% 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

Universal Health Realty Income Trust beats COPT Defense Properties on 9 of the 16 factors compared between the two stocks.

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.

About COPT Defense Properties

COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (USG) defense installations and missions (referred to as its Defense/IT Portfolio). The Company's tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of December 31, 2023, the Company's Defense/IT Portfolio of 190 properties, including 24 owned through unconsolidated joint ventures, encompassed 21.7 million square feet and was 97.2% leased.