Direct comparison: US academic communities (NYSE: ACC) and Physicians Realty Trust (NYSE: DOC)
American University Communities (NYSE: ACC – Get a rating) and Physicians Realty Trust (NYSE: DOC – Get a rating) are both mid-cap financials, but which business is the best performer? We’ll compare the two companies based on their risk strength, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
American Campus Communities pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 5.2%. American Campus Communities pays 470.0% of its earnings in the form of a dividend, suggesting that it may not have sufficient earnings to cover its dividend payment in the future. Physicians Realty Trust pays out 255.6% of its earnings as dividends, suggesting it may not have enough earnings to cover its dividend payment in the future. Physicians Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares the net margins, return on equity and return on assets of American Campus Communities and Physicians Realty Trust.
|Net margins||Return on equity||return on assets|
|American university communities||6.00%||1.81%||0.75%|
|Physicians Real Estate Trust||16.82%||2.78%||1.68%|
Institutional and Insider Ownership
97.3% of the shares of American Campus Communities are held by institutional investors. By comparison, 87.6% of the shares of Physicians Realty Trust are held by institutional investors. 1.0% of American Campus Communities stock is held by company insiders. By comparison, 0.8% of the shares of Physicians Realty Trust are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.
Volatility and risk
American Campus Communities has a beta of 0.83, meaning its stock price is 17% less volatile than the S&P 500. In comparison, Physicians Realty Trust has a beta of 0.82, meaning its stock price is 18% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for American Campus Communities and Physicians Realty Trust, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|American university communities||0||6||1||0||2.14|
|Physicians Real Estate Trust||0||6||2||0||2.25|
American Campus Communities currently has a consensus target price of $59.00, which suggests a potential downside of 8.89%. Physicians Realty Trust has a consensus target price of $19.29, suggesting a potential upside of 9.39%. Given Physicians Realty Trust’s higher consensus rating and likely higher upside, analysts clearly believe that Physicians Realty Trust is more favorable than American Campus Communities.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of American Campus Communities and Physicians Realty Trust.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|American university communities||$942.41 million||9.58||$35.49 million||$0.40||161.88|
|Physicians Real Estate Trust||$457.70 million||8.68||$83.96 million||$0.36||48.97|
Physicians Realty Trust has lower incomes, but higher incomes than US university communities. Physicians Realty Trust trades at a lower price-to-earnings ratio than American Campus Communities, indicating that it is currently the more affordable of the two stocks.
Physicians Realty Trust beats American Campus Communities on 9 of 16 factors compared between the two stocks.
About US University Communities (Get a rating)
American Campus Communities, Inc. is the largest owner, manager, and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed, self-managed real estate investment trust (REIT) with expertise in the design, financing, development, construction management and operational management of student housing. As of September 30, 2020, American Campus Communities had 166 student housing units containing approximately 111,900 beds. Including its third-party owned and managed properties, ACC’s total managed portfolio consisted of 204 properties with approximately 139,900 beds.
About the Physicians Building Trust (Get a rating)
Physicians Realty Trust is a self-managed healthcare real estate company organized to selectively acquire, develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate which is integral to the delivery of high quality healthcare. The Company operates through an UPREIT structure in which its properties are owned by Physicians Realty LP, a Delaware limited partnership (the Partnership), directly or through limited partnerships, limited liability companies or other subsidiaries. The Company is the sole general partner of the Partnership and, as of September 30, 2020, held approximately 97.4% of the OP Units.
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