Comprehensive Stock Comparison
Compare Diversified Healthcare Trust (DHC) vs Omega Healthcare Investors, Inc. (OHI) 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 | OHI | 10.7% revenue growth vs DHC's 2.8% |
| Quality / Margins | OHI | 50.2% net margin vs DHC's -18.6% |
| Stability / Safety | OHI | Beta 0.10 vs DHC's 0.75 |
| Dividends | OHI | 5.3% yield; DHC pays no meaningful dividend |
| Momentum (1Y) | DHC | +140.3% vs OHI's +38.3% |
| Efficiency (ROA) | OHI | 6.2% ROA vs DHC's -6.6%, ROIC 5.7% 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.
Omega Healthcare Investors is a real estate investment trust that owns and leases skilled nursing and assisted living facilities to healthcare operators. It generates revenue primarily through triple-net leases — where tenants pay rent plus property expenses — with skilled nursing facilities representing the majority of its portfolio. The company's moat lies in its specialized healthcare real estate expertise and diversified portfolio of essential healthcare properties across the US and UK.
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
DHC leads in 3 of 6 categories (Valuation Metrics, Total Returns). OHI leads in 2 (Financial Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
DHC and OHI operate at a comparable scale, with $1.5B and $1.2B in trailing revenue. OHI is the more profitable business, keeping 50.2% of every revenue dollar as net income compared to DHC's -18.6%. On growth, OHI holds the edge at +14.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DHCDiversified Healt… | OHIOmega Healthcare … |
|---|---|---|
| RevenueTrailing 12 months | $1.5B | $1.2B |
| EBITDAEarnings before interest/tax | $292M | $1.0B |
| Net IncomeAfter-tax profit | -$286M | $597M |
| Free Cash FlowCash after capex | -$16M | $629M |
| Gross MarginGross profit ÷ Revenue | -16.0% | +72.3% |
| Operating MarginEBIT ÷ Revenue | +2.0% | +60.2% |
| Net MarginNet income ÷ Revenue | -18.6% | +50.2% |
| FCF MarginFCF ÷ Revenue | -1.0% | +52.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | -0.0% | +14.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +75.5% | +34.1% |
Valuation Metrics
On an enterprise value basis, DHC's 6.9x EV/EBITDA is more attractive than OHI's 18.5x.
| Metric | DHCDiversified Healt… | OHIOmega Healthcare … |
|---|---|---|
| Market CapShares × price | $1.6B | $13.5B |
| Enterprise ValueMkt cap + debt − cash | $1.5B | $17.8B |
| Trailing P/EPrice ÷ TTM EPS | -5.68x | 31.14x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 24.31x |
| PEG RatioP/E ÷ EPS growth rate | — | 187.73x |
| EV / EBITDAEnterprise value multiple | 6.88x | 18.45x |
| Price / SalesMarket cap ÷ Revenue | 1.06x | 12.81x |
| Price / BookPrice ÷ Book value/share | 0.98x | 2.76x |
| Price / FCFMarket cap ÷ FCF | — | 17.98x |
Profitability & Efficiency
OHI delivers a 11.0% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $-17 for DHC. On the Piotroski fundamental quality scale (0–9), OHI scores 8/9 vs DHC's 3/9, reflecting strong financial health.
| Metric | DHCDiversified Healt… | OHIOmega Healthcare … |
|---|---|---|
| ROE (TTM)Return on equity | -17.2% | +11.0% |
| ROA (TTM)Return on assets | -6.6% | +6.2% |
| ROICReturn on invested capital | -0.9% | +5.7% |
| ROCEReturn on capital employed | -0.8% | +7.2% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 8 |
| Debt / EquityFinancial leverage | — | 1.02x |
| Net DebtTotal debt minus cash | -$105M | $4.3B |
| Cash & Equiv.Liquid assets | $105M | $518M |
| Total DebtShort + long-term debt | $0 | $4.8B |
| Interest CoverageEBIT ÷ Interest expense | -0.19x | 2.98x |
Total Returns (with DRIP)
A $10,000 investment in OHI five years ago would be worth $16,302 today (with dividends reinvested), compared to $14,904 for DHC. Over the past 12 months, DHC leads with a +140.3% total return vs OHI's +38.3%. The 3-year compound annual growth rate (CAGR) favors DHC at 91.5% vs OHI's 28.1% — a key indicator of consistent wealth creation.
| Metric | DHCDiversified Healt… | OHIOmega Healthcare … |
|---|---|---|
| YTD ReturnYear-to-date | +35.9% | +9.9% |
| 1-Year ReturnPast 12 months | +140.3% | +38.3% |
| 3-Year ReturnCumulative with dividends | +602.0% | +110.2% |
| 5-Year ReturnCumulative with dividends | +49.0% | +63.0% |
| 10-Year ReturnCumulative with dividends | -21.4% | +132.8% |
| CAGR (3Y)Annualised 3-year return | +91.5% | +28.1% |
Risk & Volatility
OHI is the less volatile stock with a 0.10 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… | OHIOmega Healthcare … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.75x | 0.10x |
| 52-Week HighHighest price in past year | $6.85 | $49.14 |
| 52-Week LowLowest price in past year | $2.00 | $35.04 |
| % of 52W HighCurrent price vs 52-week peak | +98.7% | +98.2% |
| RSI (14)Momentum oscillator 0–100 | 68.1 | 68.6 |
| Avg Volume (50D)Average daily shares traded | 1.4M | 1.6M |
Analyst Outlook
Wall Street rates DHC as "Hold" and OHI as "Hold". Consensus price targets imply 1.8% upside for OHI (target: $49) vs -26.0% for DHC (target: $5). OHI is the only dividend payer here at 5.25% yield — a key consideration for income-focused portfolios.
| Metric | DHCDiversified Healt… | OHIOmega Healthcare … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $5.00 | $49.14 |
| # AnalystsCovering analysts | 17 | 28 |
| Dividend YieldAnnual dividend ÷ price | — | +5.3% |
| Dividend StreakConsecutive years of raises | 3 | 0 |
| Dividend / ShareAnnual DPS | — | $2.53 |
| 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 | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | 100 | 87.03 | -13.0% |
| Omega Healthcare In… (OHI) | 100 | 107.71 | +7.7% |
Omega Healthcare In… (OHI) returned +63% over 5 years vs Diversified Healthc… (DHC)'s +49%. A $10,000 investment in OHI 5 years ago would be worth $16,302 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | $1.1B | $1.5B | +45.4% |
| Omega Healthcare In… (OHI) | $901M | $1.1B | +16.7% |
Diversified Healthcare Trust's revenue grew from $1.1B (2016) to $1.5B (2025) — a 4.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | 13.4% | -18.6% | -239.2% |
| Omega Healthcare In… (OHI) | 40.7% | 38.6% | -5.0% |
Diversified Healthcare Trust's net margin went from 13% (2016) to -19% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | 30.9 | 4.2 | -86.4% |
| Omega Healthcare In… (OHI) | 54 | 24.4 | -54.8% |
Diversified Healthcare Trust has traded in a 4x–31x P/E range over 3 years; current trailing P/E is ~-6x. Omega Healthcare Investors, Inc. has traded in a 16x–54x P/E range over 8 years; current trailing P/E is ~31x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Diversified Healthc… (DHC) | 0.6 | -1.19 | -298.3% |
| Omega Healthcare In… (OHI) | 1.9 | 1.55 | -18.4% |
Diversified Healthcare Trust's EPS grew from $0.60 (2016) to $-1.19 (2025) — a NaN% CAGR.
Chart 6Free Cash Flow — 5 Years
Diversified Healthcare Trust generated $-20M FCF in 2025 (+69% vs 2021). Omega Healthcare Investors, Inc. generated $749M FCF in 2024 (+20% vs 2021).
DHC vs OHI: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is DHC or OHI a better buy right now?
Omega Healthcare Investors, Inc. (OHI) offers the better valuation at 31.1x trailing P/E (24.3x 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 OHI?
Over the past 5 years, Omega Healthcare Investors, Inc. (OHI) delivered a total return of +63.0%, compared to +49.0% for Diversified Healthcare Trust (DHC). A $10,000 investment in OHI five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: OHI returned +132.8% 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 OHI?
By beta (market sensitivity over 5 years), Omega Healthcare Investors, Inc. (OHI) is the lower-risk stock at 0.10β versus Diversified Healthcare Trust's 0.75β — meaning DHC is approximately 673% more volatile than OHI relative to the S&P 500.
04Which has better profit margins — DHC or OHI?
Omega Healthcare Investors, Inc. (OHI) is the more profitable company, earning 38.6% net margin versus -18.6% for Diversified Healthcare Trust — meaning it keeps 38.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OHI leads at 62.7% versus -2.6% for DHC. At the gross margin level — before operating expenses — OHI leads at 98.6%, 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 OHI more undervalued right now?
Analyst consensus price targets imply the most upside for OHI: 1.8% to $49.14.
06Which pays a better dividend — DHC or OHI?
In this comparison, OHI (5.3% yield) pays a dividend. DHC does not pay a meaningful dividend and should not be held primarily for income.
07Is DHC or OHI better for a retirement portfolio?
For long-horizon retirement investors, Omega Healthcare Investors, Inc. (OHI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.10), 5.3% yield, +132.8% 10Y return). Both have compounded well over 10 years (OHI: +132.8%, 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 OHI?
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. In terms of investment character: DHC is a small-cap quality compounder stock; OHI is a mid-cap income-oriented stock. OHI pays a dividend while DHC does not, making them suitable for different income and tax situations. 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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