National Health Investors (NYSE:NHI) versus Paramount Group (NYSE:PGRE) Critical Review

Paramount Group (NYSE:PGRE) and National Health Investors (NYSE:NHI) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Earnings & Valuation

This table compares Paramount Group and National Health Investors’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Group	$742.79 million	1.32	-$259.74 million	($1.20)	-3.77
National Health Investors	$319.83 million	8.17	$135.65 million	$3.13	19.22

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

Insider and Institutional Ownership

65.6% of Paramount Group shares are held by institutional investors. Comparatively, 62.5% of National Health Investors shares are held by institutional investors. 13.5% of Paramount Group shares are held by insiders. Comparatively, 7.3% of National Health Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Paramount Group pays an annual dividend of $0.14 per share and has a dividend yield of 3.1%. National Health Investors pays an annual dividend of $3.60 per share and has a dividend yield of 6.0%. Paramount Group pays out -11.7% of its earnings in the form of a dividend. National Health Investors pays out 115.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paramount Group	-34.97%	-6.07%	-3.13%
National Health Investors	42.40%	10.65%	5.41%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Paramount Group and National Health Investors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Group	2	2	1	0	1.80
National Health Investors	0	4	4	0	2.50

Paramount Group presently has a consensus price target of $4.60, indicating a potential upside of 2.91%. National Health Investors has a consensus price target of $60.50, indicating a potential upside of 0.63%. Given Paramount Group’s higher probable upside, equities analysts clearly believe Paramount Group is more favorable than National Health Investors.

Risk and Volatility

Paramount Group has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, National Health Investors has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Summary

National Health Investors beats Paramount Group on 10 of the 16 factors compared between the two stocks.

About Paramount Group

Paramount Group, Inc. ("Paramount" or the "Company") is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.