Critical Comparison: Franklin Street Properties (NYSE:FSP) vs. Universal Health Realty Income Trust (NYSE:UHT)

Franklin Street Properties (NYSE:FSP) and Universal Health Realty Income Trust (NYSE:UHT) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Dividends

Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 2.4%. Universal Health Realty Income Trust pays an annual dividend of $2.92 per share and has a dividend yield of 7.5%. Franklin Street Properties pays out -7.1% of its earnings in the form of a dividend. Universal Health Realty Income Trust pays out 249.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Franklin Street Properties and Universal Health Realty Income Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Street Properties	0	0	0	0	N/A
Universal Health Realty Income Trust	0	0	0	0	N/A

Volatility & Risk

Franklin Street Properties has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Insider and Institutional Ownership

61.4% of Franklin Street Properties shares are held by institutional investors. Comparatively, 64.7% of Universal Health Realty Income Trust shares are held by institutional investors. 6.2% of Franklin Street Properties shares are held by insiders. Comparatively, 2.2% of Universal Health Realty Income Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Franklin Street Properties and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Street Properties	-41.73%	-8.05%	-5.09%
Universal Health Realty Income Trust	16.66%	7.88%	2.70%

Valuation & Earnings

This table compares Franklin Street Properties and Universal Health Realty Income Trust’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Street Properties	$145.71 million	1.17	-$48.11 million	($0.56)	-2.95
Universal Health Realty Income Trust	$97.49 million	5.49	$15.40 million	$1.17	33.09

Universal Health Realty Income Trust has lower revenue, but higher earnings than Franklin Street Properties. Franklin Street Properties is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Universal Health Realty Income Trust beats Franklin Street Properties on 9 of the 13 factors compared between the two stocks.

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.