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

Risk & Volatility

Welltower has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Welltower’s peers have a beta of 0.50, meaning that their average stock price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares Welltower and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Welltower $4.19 billion $2.05 billion 21.89
Welltower Competitors $863.81 million $523.61 million 39.23

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Welltower and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Welltower 2 8 6 0 2.25
Welltower Competitors 205 848 686 12 2.29

Welltower presently has a consensus price target of $72.15, suggesting a potential upside of 2.67%. As a group, “Healthcare REITs” companies have a potential upside of 2.76%. Given Welltower’s peers stronger consensus rating and higher probable upside, analysts plainly believe Welltower has less favorable growth aspects than its peers.

Profitability

This table compares Welltower and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Welltower 28.94% 8.74% 4.39%
Welltower Competitors 38.21% 7.68% 3.77%

Institutional and Insider Ownership

85.9% of Welltower shares are held by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are held by institutional investors. 0.2% of Welltower shares are held by insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are held by 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.

Dividends

Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 5.0%. Welltower pays out 108.4% 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 5.2% and pay out 125.1% of their earnings in the form of a dividend. Welltower has raised its dividend for 7 consecutive years.

Summary

Welltower peers beat Welltower on 9 of the 15 factors compared.

About Welltower

Welltower Inc. invests with seniors housing operators, post-acute providers and health systems to fund real estate and infrastructure. The Company invests in seniors housing and healthcare real estate. It operates in three segments: triple-net, seniors housing operating and outpatient medical. Welltower, a real estate investment trust (REIT), owns interests in properties concentrated in markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities, and outpatient medical properties. Its triple-net properties include independent living facilities, independent supportive living facilities (Canada), continuing care retirement communities, assisted living facilities, care homes with and without nursing (the United Kingdom), Alzheimer’s/dementia care facilities, long-term/post-acute care facilities and hospitals. Its outpatient medical properties include outpatient medical buildings.

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