Iron Mountain (NYSE:IRM) versus Healthcare Realty Trust (NYSE:HR) Critical Analysis

Iron Mountain (NYSE:IRMGet Free Report) and Healthcare Realty Trust (NYSE:HRGet Free Report) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Iron Mountain and Healthcare Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iron Mountain 2.95% -401.83% 2.87%
Healthcare Realty Trust -51.60% -11.20% -5.69%

Earnings and Valuation

This table compares Iron Mountain and Healthcare Realty Trust”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Iron Mountain $6.15 billion 4.45 $180.16 million $0.61 152.70
Healthcare Realty Trust $1.25 billion 4.85 -$278.26 million ($1.78) -9.61

Iron Mountain has higher revenue and earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Iron Mountain, indicating that it is currently the more affordable of the two stocks.

Dividends

Iron Mountain pays an annual dividend of $3.14 per share and has a dividend yield of 3.4%. Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.2%. Iron Mountain pays out 514.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust pays out -69.7% of its earnings in the form of a dividend. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Iron Mountain and Healthcare Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iron Mountain 0 0 6 1 3.14
Healthcare Realty Trust 1 3 1 0 2.00

Iron Mountain presently has a consensus target price of $127.67, indicating a potential upside of 37.05%. Healthcare Realty Trust has a consensus target price of $17.20, indicating a potential upside of 0.53%. Given Iron Mountain’s stronger consensus rating and higher probable upside, equities analysts plainly believe Iron Mountain is more favorable than Healthcare Realty Trust.

Volatility and Risk

Iron Mountain has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Institutional and Insider Ownership

80.1% of Iron Mountain shares are held by institutional investors. 2.1% of Iron Mountain shares are held by company insiders. Comparatively, 0.6% of Healthcare Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Iron Mountain beats Healthcare Realty Trust on 13 of the 17 factors compared between the two stocks.

About Iron Mountain

(Get Free Report)

Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services. Founded in 1951 and trusted by more than 240,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers’ work. Through a range of offerings including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.

About Healthcare Realty Trust

(Get Free Report)

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.

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