Manhattan Bridge Capital (NASDAQ:LOAN – Get Free Report) and Diversified Healthcare Trust (NASDAQ:DHC – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
Risk & Volatility
Manhattan Bridge Capital has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.
Profitability
This table compares Manhattan Bridge Capital and Diversified Healthcare Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Manhattan Bridge Capital | 56.72% | 13.20% | 7.76% |
| Diversified Healthcare Trust | -24.14% | -15.36% | -6.51% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Manhattan Bridge Capital | 0 | 0 | 0 | 0 | N/A |
| Diversified Healthcare Trust | 0 | 1 | 1 | 0 | 2.50 |
Diversified Healthcare Trust has a consensus price target of $6.00, suggesting a potential upside of 84.05%. Given Diversified Healthcare Trust’s higher probable upside, analysts plainly believe Diversified Healthcare Trust is more favorable than Manhattan Bridge Capital.
Earnings & Valuation
This table compares Manhattan Bridge Capital and Diversified Healthcare Trust’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Manhattan Bridge Capital | $7.45 million | 8.00 | $5.48 million | $0.50 | 10.42 |
| Diversified Healthcare Trust | $1.41 billion | 0.56 | -$293.57 million | ($1.37) | -2.38 |
Manhattan Bridge Capital has higher earnings, but lower revenue than Diversified Healthcare Trust. Diversified Healthcare Trust is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are held by institutional investors. 24.5% of Manhattan Bridge Capital shares are held by insiders. Comparatively, 1.4% of Diversified Healthcare Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Manhattan Bridge Capital pays an annual dividend of $0.46 per share and has a dividend yield of 8.8%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.2%. Manhattan Bridge Capital pays out 92.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -2.9% of its earnings in the form of a dividend.
Summary
Manhattan Bridge Capital beats Diversified Healthcare Trust on 9 of the 15 factors compared between the two stocks.
About Manhattan Bridge Capital
Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 1989 and is headquartered in Great Neck, New York.
About Diversified Healthcare Trust
DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2023, DHC's approximately $7.2 billion portfolio included 371 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 8.6 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA.
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