Comprehensive Stock Comparison
Compare Diversified Healthcare Trust (DHC) vs Realty Income Corporation (O) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | O | 9.1% revenue growth vs DHC's 2.8% |
| Quality / Margins | O | 18.4% net margin vs DHC's -18.6% |
| Stability / Safety | O | Beta 0.19 vs DHC's 0.75 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | DHC | +140.3% vs O's +23.6% |
| Efficiency (ROA) | O | 1.5% ROA vs DHC's -6.6%, ROIC 2.3% vs -0.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Diversified Healthcare Trust is a real estate investment trust that owns and operates healthcare-related properties including medical office buildings, senior living communities, and life science facilities. It generates revenue primarily through property rental income — with medical office properties contributing roughly 60% of net operating income and senior living communities about 40% — along with management fees from its operating partner. The company's competitive advantage lies in its specialized healthcare real estate portfolio and its long-term management relationship with The RMR Group, which provides operational expertise in the healthcare property sector.
Realty Income is a real estate investment trust that owns and leases single-tenant commercial properties to retail and service-oriented businesses. It generates revenue primarily through long-term triple-net leases—where tenants pay rent plus property expenses—with retail clients like convenience stores and drugstores accounting for roughly 80% of its portfolio. The company's moat lies in its massive scale, diversified tenant base, and long-term lease structure that provides predictable monthly cash flow supporting its famous monthly dividend payments.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
O leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). DHC leads in 2 (Valuation Metrics, Total Returns). 1 tied.
Financial Metrics (TTM)
O is the larger business by revenue, generating $5.7B annually — 3.7x DHC's $1.5B. O is the more profitable business, keeping 18.4% of every revenue dollar as net income compared to DHC's -18.6%. On growth, O holds the edge at +11.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DHCDiversified Healt… | ORealty Income Cor… |
|---|---|---|
| RevenueTrailing 12 months | $1.5B | $5.7B |
| EBITDAEarnings before interest/tax | $292M | $4.1B |
| Net IncomeAfter-tax profit | -$286M | $1.1B |
| Free Cash FlowCash after capex | -$16M | $2.8B |
| Gross MarginGross profit ÷ Revenue | -16.0% | +89.8% |
| Operating MarginEBIT ÷ Revenue | +2.0% | +28.3% |
| Net MarginNet income ÷ Revenue | -18.6% | +18.4% |
| FCF MarginFCF ÷ Revenue | -1.0% | +48.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | -0.0% | +11.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +75.5% | +39.1% |
Valuation Metrics
On an enterprise value basis, DHC's 6.9x EV/EBITDA is more attractive than O's 15.2x.
| Metric | DHCDiversified Healt… | ORealty Income Cor… |
|---|---|---|
| Market CapShares × price | $1.6B | $62.6B |
| Enterprise ValueMkt cap + debt − cash | $1.5B | $62.1B |
| Trailing P/EPrice ÷ TTM EPS | -5.68x | 57.27x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 41.80x |
| PEG RatioP/E ÷ EPS growth rate | — | 80.25x |
| EV / EBITDAEnterprise value multiple | 6.88x | 15.16x |
| Price / SalesMarket cap ÷ Revenue | 1.06x | 10.88x |
| Price / BookPrice ÷ Book value/share | 0.98x | 1.51x |
| Price / FCFMarket cap ÷ FCF | — | 15.66x |
Profitability & Efficiency
O delivers a 2.6% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $-17 for DHC. On the Piotroski fundamental quality scale (0–9), O scores 5/9 vs DHC's 3/9, reflecting solid financial health.
| Metric | DHCDiversified Healt… | ORealty Income Cor… |
|---|---|---|
| ROE (TTM)Return on equity | -17.2% | +2.6% |
| ROA (TTM)Return on assets | -6.6% | +1.5% |
| ROICReturn on invested capital | -0.9% | +2.3% |
| ROCEReturn on capital employed | -0.8% | +2.3% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 5 |
| Debt / EquityFinancial leverage | — | — |
| Net DebtTotal debt minus cash | -$105M | -$435M |
| Cash & Equiv.Liquid assets | $105M | $435M |
| Total DebtShort + long-term debt | $0 | $0 |
| Interest CoverageEBIT ÷ Interest expense | -0.19x | — |
Total Returns (with DRIP)
A $10,000 investment in DHC five years ago would be worth $14,904 today (with dividends reinvested), compared to $14,035 for O. Over the past 12 months, DHC leads with a +140.3% total return vs O's +23.6%. The 3-year compound annual growth rate (CAGR) favors DHC at 91.5% vs O's 6.3% — a key indicator of consistent wealth creation.
| Metric | DHCDiversified Healt… | ORealty Income Cor… |
|---|---|---|
| YTD ReturnYear-to-date | +35.9% | +17.9% |
| 1-Year ReturnPast 12 months | +140.3% | +23.6% |
| 3-Year ReturnCumulative with dividends | +602.0% | +19.9% |
| 5-Year ReturnCumulative with dividends | +49.0% | +40.3% |
| 10-Year ReturnCumulative with dividends | -21.4% | +67.6% |
| CAGR (3Y)Annualised 3-year return | +91.5% | +6.3% |
Risk & Volatility
O is the less volatile stock with a 0.19 beta — it tends to amplify market swings less than DHC's 0.75 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | DHCDiversified Healt… | ORealty Income Cor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.75x | 0.19x |
| 52-Week HighHighest price in past year | $6.85 | $67.94 |
| 52-Week LowLowest price in past year | $2.00 | $50.71 |
| % of 52W HighCurrent price vs 52-week peak | +98.7% | +98.6% |
| RSI (14)Momentum oscillator 0–100 | 68.1 | 70.7 |
| Avg Volume (50D)Average daily shares traded | 1.4M | 5.4M |
Analyst Outlook
Wall Street rates DHC as "Hold" and O as "Hold". Consensus price targets imply -5.4% upside for O (target: $63) vs -26.0% for DHC (target: $5).
| Metric | DHCDiversified Healt… | ORealty Income Cor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $5.00 | $63.38 |
| # AnalystsCovering analysts | 17 | 33 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 3 | 27 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | 100 | 92.85 | -7.2% |
| Realty Income Corpo… (O) | 100 | 86.35 | -13.7% |
Diversified Healthc… (DHC) returned +49% over 5 years vs Realty Income Corpo… (O)'s +40%. A $10,000 investment in DHC 5 years ago would be worth $14,904 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | $1.1B | $1.5B | +45.4% |
| Realty Income Corpo… (O) | $1.1B | $5.7B | +421.2% |
Diversified Healthcare Trust's revenue grew from $1.1B (2016) to $1.5B (2025) — a 4.2% CAGR. Realty Income Corporation's revenue grew from $1.1B (2016) to $5.7B (2025) — a 20.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | 13.4% | -18.6% | -239.2% |
| Realty Income Corpo… (O) | 28.6% | 18.4% | -35.6% |
Diversified Healthcare Trust's net margin went from 13% (2016) to -19% (2025). Realty Income Corporation's net margin went from 29% (2016) to 18% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | 30.9 | 4.2 | -86.4% |
| Realty Income Corpo… (O) | 50.2 | 48.2 | -4.0% |
Diversified Healthcare Trust has traded in a 4x–31x P/E range over 3 years; current trailing P/E is ~-6x. Realty Income Corporation has traded in a 45x–82x P/E range over 9 years; current trailing P/E is ~57x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | 0.6 | -1.19 | -298.3% |
| Realty Income Corpo… (O) | 1.13 | 1.17 | +3.5% |
Diversified Healthcare Trust's EPS grew from $0.60 (2016) to $-1.19 (2025) — a NaN% CAGR. Realty Income Corporation's EPS grew from $1.13 (2016) to $1.17 (2025) — a 0% CAGR.
Chart 6Free Cash Flow — 5 Years
Diversified Healthcare Trust generated $-20M FCF in 2025 (+69% vs 2021). Realty Income Corporation generated $4B FCF in 2025 (+207% vs 2021).
DHC vs O: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is DHC or O a better buy right now?
Realty Income Corporation (O) offers the better valuation at 57.3x trailing P/E (41.8x forward), making it the more compelling value choice. Analysts rate Diversified Healthcare Trust (DHC) a "Hold" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — DHC or O?
Over the past 5 years, Diversified Healthcare Trust (DHC) delivered a total return of +49.0%, compared to +40.3% for Realty Income Corporation (O). A $10,000 investment in DHC five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: O returned +67.6% versus DHC's -21.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — DHC or O?
By beta (market sensitivity over 5 years), Realty Income Corporation (O) is the lower-risk stock at 0.19β versus Diversified Healthcare Trust's 0.75β — meaning DHC is approximately 298% more volatile than O relative to the S&P 500.
04Which has better profit margins — DHC or O?
Realty Income Corporation (O) is the more profitable company, earning 18.4% net margin versus -18.6% for Diversified Healthcare Trust — meaning it keeps 18.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: O leads at 28.3% versus -2.6% for DHC. At the gross margin level — before operating expenses — O leads at 89.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is DHC or O more undervalued right now?
Analyst consensus price targets imply the most upside for O: -5.4% to $63.38.
06Which pays a better dividend — DHC or O?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
07Is DHC or O better for a retirement portfolio?
For long-horizon retirement investors, Realty Income Corporation (O) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.19)). Both have compounded well over 10 years (O: +67.6%, DHC: -21.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between DHC and O?
Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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