Critical Survey: National Health Investors (NHI) & Aviv REIT (AVIV)

Aviv REIT (NYSE: AVIV) and National Health Investors (NYSE:NHI) are both financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Valuation & Earnings

This table compares Aviv REIT and National Health Investors’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aviv REIT N/A N/A N/A $0.75 48.91
National Health Investors $278.66 million 9.80 $159.37 million $4.00 16.43

National Health Investors has higher revenue and earnings than Aviv REIT. National Health Investors is trading at a lower price-to-earnings ratio than Aviv REIT, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Aviv REIT and National Health Investors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aviv REIT 0 0 0 0 N/A
National Health Investors 2 5 3 0 2.10

National Health Investors has a consensus target price of $78.29, suggesting a potential upside of 19.10%. Given National Health Investors’ higher possible upside, analysts clearly believe National Health Investors is more favorable than Aviv REIT.

Profitability

This table compares Aviv REIT and National Health Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aviv REIT 25.04% 6.86% 2.80%
National Health Investors 57.19% 12.26% 6.34%

Dividends

National Health Investors pays an annual dividend of $3.80 per share and has a dividend yield of 5.8%. Aviv REIT does not pay a dividend. National Health Investors pays out 95.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Health Investors has increased its dividend for 8 consecutive years.

Insider & Institutional Ownership

70.1% of National Health Investors shares are held by institutional investors. 5.2% of National Health Investors shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

National Health Investors beats Aviv REIT on 11 of the 13 factors compared between the two stocks.

Aviv REIT Company Profile

Aviv REIT, Inc. (AVIV) is a real estate investment trust (REIT). The Company is engaged in investments in healthcare properties, consisting primarily of skilled nursing facilities (SNFs), assisted living facilities (ALFs), and other healthcare properties located in the United States. It specializes in the ownership and triple-net leasing of post-acute and long-term care SNFs. Its leases include rent escalation provisions. The Company is the general partner of Aviv Healthcare Properties Limited Partnership. Its portfolio consists of approximately 346 properties, comprising 285 skilled nursing facilities, 35 assisted living facilities, 14 traumatic brain injury facilities, two long-term acute care hospitals, one neuro hospital, two independent living facilities, two medical office buildings, and five land parcels for development, with approximately 29,646 beds in 30 states triple-net leased to 37 operators.

National Health Investors Company Profile

National Health Investors, Inc. is a self-managed real estate investment trust (REIT) specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. The Company is engaged in the business of owning and financing healthcare properties. Its portfolio consists of lease, mortgage and other note investments in independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities, specialty hospitals and medical office buildings. Its other investments include marketable securities and a joint venture structured to comply with the provisions of the REIT Investment Diversification Empowerment Act of 2007 (RIDEA) through which it invests in facility operations managed by an independent third party. As of December 31, 2016, it had investments in real estate, mortgage and other notes receivable involving 205 facilities located in 32 states.

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