Alexandria Real Estate Equities (NYSE:ARE – Get Free Report) and Highlands REIT (OTCMKTS:HHDS – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
Analyst Ratings
This is a summary of recent recommendations and price targets for Alexandria Real Estate Equities and Highlands REIT, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alexandria Real Estate Equities | 2 | 11 | 3 | 0 | 2.06 |
| Highlands REIT | 0 | 0 | 0 | 0 | 0.00 |
Alexandria Real Estate Equities presently has a consensus target price of $51.23, suggesting a potential upside of 2.41%. Given Alexandria Real Estate Equities’ stronger consensus rating and higher probable upside, equities analysts plainly believe Alexandria Real Estate Equities is more favorable than Highlands REIT.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Alexandria Real Estate Equities | -36.03% | -5.21% | -2.96% |
| Highlands REIT | -30.49% | -5.91% | -3.53% |
Insider and Institutional Ownership
96.5% of Alexandria Real Estate Equities shares are owned by institutional investors. Comparatively, 0.0% of Highlands REIT shares are owned by institutional investors. 1.4% of Alexandria Real Estate Equities shares are owned by insiders. Comparatively, 2.3% of Highlands REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Alexandria Real Estate Equities and Highlands REIT”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alexandria Real Estate Equities | $3.03 billion | 2.88 | -$1.43 billion | ($6.27) | -7.98 |
| Highlands REIT | $37.41 million | 2.15 | -$11.10 million | ($0.01) | -11.20 |
Highlands REIT has lower revenue, but higher earnings than Alexandria Real Estate Equities. Highlands REIT is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Alexandria Real Estate Equities has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Highlands REIT has a beta of 22.15, suggesting that its stock price is 2,115% more volatile than the S&P 500.
Summary
Alexandria Real Estate Equities beats Highlands REIT on 9 of the 14 factors compared between the two stocks.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.
About Highlands REIT
We are a self-advised and self-administered real estate investment trust (REIT) created to own and manage substantially all of the non-core investment properties previously owned and managed by our former parent, InvenTrust Properties Corp., a Maryland corporation (InvenTrust). On April 28, 2016, we were spun-off from InvenTrust through a pro rata distribution (the Distribution) by InvenTrust of 100% of the outstanding shares of our common stock to holders of InvenTrust's common stock. Prior to or concurrent with the separation, we and InvenTrust engaged in certain reorganization transactions that were designed to consolidate substantially all of InvenTrust's remaining non-core investment properties in Highlands.
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