Contrasting Iron Mountain (NYSE:IRM) & Healthcare Trust Of America (NYSE:HTA)

Iron Mountain (NYSE:IRM) and Healthcare Trust Of America (NYSE:HTA) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Dividends

Iron Mountain pays an annual dividend of $2.44 per share and has a dividend yield of 7.9%. Healthcare Trust Of America pays an annual dividend of $1.24 per share and has a dividend yield of 4.5%. Iron Mountain pays out 106.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Trust Of America pays out 76.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Iron Mountain has increased its dividend for 9 consecutive years and Healthcare Trust Of America has increased its dividend for 6 consecutive years. Iron Mountain is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings for Iron Mountain and Healthcare Trust Of America, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iron Mountain 2 4 2 0 2.00
Healthcare Trust Of America 0 4 5 0 2.56

Iron Mountain currently has a consensus price target of $34.94, suggesting a potential upside of 12.72%. Healthcare Trust Of America has a consensus price target of $30.00, suggesting a potential upside of 8.11%. Given Iron Mountain’s higher possible upside, analysts plainly believe Iron Mountain is more favorable than Healthcare Trust Of America.

Earnings and Valuation

This table compares Iron Mountain and Healthcare Trust Of America’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Iron Mountain $4.23 billion 2.11 $363.35 million $2.30 13.48
Healthcare Trust Of America $696.43 million 8.17 $213.46 million $1.62 17.13

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

Insider & Institutional Ownership

87.6% of Iron Mountain shares are held by institutional investors. Comparatively, 90.5% of Healthcare Trust Of America shares are held by institutional investors. 1.9% of Iron Mountain shares are held by insiders. Comparatively, 1.0% of Healthcare Trust Of America 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.

Volatility & Risk

Iron Mountain has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Healthcare Trust Of America has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Iron Mountain 8.18% 19.65% 2.79%
Healthcare Trust Of America 31.68% 6.73% 3.57%

Summary

Iron Mountain beats Healthcare Trust Of America on 9 of the 17 factors compared between the two stocks.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 85 million square feet across more than 1,400 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include information management, digital transformation, secure storage, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working.

About Healthcare Trust Of America

Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of MOBs in the United States, comprising approximately 23.2 million square feet of GLA, with $6.8 billion invested primarily in MOBs. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. Investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions, which translates to superior demographics, high-quality graduates, intellectual talent and job growth. The strategic markets HTA invests in support a strong, long-term demand for quality medical office space. HTA utilizes an integrated asset management platform consisting of on-site leasing, property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each market. This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant retention, rental growth and long-term value creation. Headquartered in Scottsdale, Arizona, HTA has developed a national brand with dedicated relationships at the local level. Founded in 2006 and listed on the New York Stock Exchange in 2012, HTA has produced attractive returns for its stockholders that have outperformed the S&P 500 and US REIT indices.

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