HCP (NYSE: HCP) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it contrast to its rivals? We will compare HCP to related companies based on the strength of its institutional ownership, profitability, analyst recommendations, earnings, valuation, dividends and risk.

Dividends

HCP pays an annual dividend of $1.48 per share and has a dividend yield of 5.0%. HCP pays out 102.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.0% and pay out 124.4% of their earnings in the form of a dividend. HCP is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations for HCP and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HCP 1 13 2 0 2.06
HCP Competitors 203 831 675 12 2.29

HCP currently has a consensus price target of $32.33, indicating a potential upside of 9.79%. As a group, “Healthcare REITs” companies have a potential downside of 0.35%. Given HCP’s higher probable upside, equities analysts clearly believe HCP is more favorable than its rivals.

Profitability

This table compares HCP and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HCP 32.16% 9.96% 4.19%
HCP Competitors 38.21% 7.68% 3.77%

Insider and Institutional Ownership

89.8% of HCP shares are held by institutional investors. Comparatively, 84.4% of shares of all “Healthcare REITs” companies are held by institutional investors. 0.2% of HCP shares are held by company insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

HCP has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, HCP’s rivals have a beta of 0.50, indicating that their average share price is 50% less volatile than the S&P 500.

Earnings and Valuation

This table compares HCP and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
HCP $2.02 billion $1.17 billion 20.31
HCP Competitors $788.38 million $482.52 million 40.56

HCP has higher revenue and earnings than its rivals. HCP is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

HCP beats its rivals on 8 of the 15 factors compared.

About HCP

HCP, Inc. is a self-administered real estate investment trust. The Company invests in real estate serving the healthcare industry in the United States. The Company’s segments include senior housing triple-net (SH NNN), senior housing operating portfolio (SHOP), life science and medical office. Its senior housing facilities include independent living facilities, assisted living facilities, memory care facilities, care homes, and continuing care retirement communities. Its Life science properties contain laboratory and office space for biotechnology, medical device and pharmaceutical companies, scientific research institutions, government agencies and other organizations. Its Medical office buildings contain physicians’ offices and examination rooms, and may include pharmacies, hospital ancillary service space and outpatient services. As of December 31, 2016, it had interests in and managed 15 hospitals, 61 care homes in the United Kingdom and five post-acute/skilled nursing facilities.

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