Critical Contrast: American Healthcare REIT (NYSE:AHR) vs. PotlatchDeltic (NASDAQ:PCH)

PotlatchDeltic (NASDAQ:PCH) and American Healthcare REIT (NYSE:AHR) are both mid-cap construction companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PotlatchDeltic	2.06%	1.05%	0.65%
American Healthcare REIT	-1.84%	-1.87%	-0.80%

Earnings and Valuation

This table compares PotlatchDeltic and American Healthcare REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PotlatchDeltic	$1.06 billion	3.49	$21.88 million	$0.28	168.18
American Healthcare REIT	$2.07 billion	2.25	-$71.47 million	($0.27)	-112.72

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

Institutional and Insider Ownership

86.1% of PotlatchDeltic shares are owned by institutional investors. Comparatively, 16.7% of American Healthcare REIT shares are owned by institutional investors. 2.0% of PotlatchDeltic shares are owned by company insiders. Comparatively, 1.0% of American Healthcare REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

PotlatchDeltic pays an annual dividend of $1.80 per share and has a dividend yield of 3.8%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. PotlatchDeltic pays out 642.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Healthcare REIT pays out -370.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for PotlatchDeltic and American Healthcare REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PotlatchDeltic	0	1	6	0	2.86
American Healthcare REIT	0	0	7	0	3.00

PotlatchDeltic presently has a consensus target price of $48.71, indicating a potential upside of 3.45%. American Healthcare REIT has a consensus target price of $27.71, indicating a potential downside of 8.94%. Given PotlatchDeltic’s higher possible upside, analysts clearly believe PotlatchDeltic is more favorable than American Healthcare REIT.

Summary

PotlatchDeltic beats American Healthcare REIT on 11 of the 15 factors compared between the two stocks.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance.

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.