Head to Head Analysis: Sun Communities (NYSE:SUI) & American Healthcare REIT (NYSE:AHR)

American Healthcare REIT (NYSE:AHR) and Sun Communities (NYSE:SUI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Valuation & Earnings

This table compares American Healthcare REIT and Sun Communities’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Healthcare REIT	$1.87 billion	1.13	-$71.47 million	N/A	N/A
Sun Communities	$3.22 billion	4.73	-$201.00 million	$1.16	105.44

American Healthcare REIT has higher earnings, but lower revenue than Sun Communities.

Dividends

American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 6.3%. Sun Communities pays an annual dividend of $3.76 per share and has a dividend yield of 3.1%. Sun Communities pays out 324.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

16.7% of American Healthcare REIT shares are owned by institutional investors. Comparatively, 99.6% of Sun Communities shares are owned by institutional investors. 1.9% of Sun Communities shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Healthcare REIT	-2.77%	-3.26%	-1.15%
Sun Communities	4.46%	1.87%	0.84%

Analyst Ratings

This is a breakdown of recent ratings and target prices for American Healthcare REIT and Sun Communities, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Healthcare REIT	0	1	7	0	2.88
Sun Communities	0	5	5	0	2.50

American Healthcare REIT presently has a consensus price target of $16.00, suggesting a potential upside of 0.06%. Sun Communities has a consensus price target of $134.40, suggesting a potential upside of 9.88%. Given Sun Communities’ higher probable upside, analysts plainly believe Sun Communities is more favorable than American Healthcare REIT.

Summary

Sun Communities beats American Healthcare REIT on 8 of the 13 factors compared between the two stocks.

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.

About Sun Communities

Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.