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

Analyst Ratings

This is a summary of current ratings and recommmendations for Ventas and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ventas 4 7 1 0 1.75
Ventas Competitors 128 708 641 12 2.36

Ventas presently has a consensus price target of $63.44, indicating a potential upside of 0.63%. As a group, “Healthcare REITs” companies have a potential upside of 4.73%. Given Ventas’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Ventas has less favorable growth aspects than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Ventas 20.08% 6.31% 2.81%
Ventas Competitors 38.21% 8.11% 4.09%

Dividends

Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. Ventas pays out 157.4% 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 125.2% of their earnings in the form of a dividend. Ventas has raised its dividend for 6 consecutive years. Ventas lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Ventas and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ventas $3.52 billion $1.88 billion 32.01
Ventas Competitors $788.38 million $482.52 million 38.98

Ventas has higher revenue and earnings than its rivals. Ventas 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.

Volatility and Risk

Ventas has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Ventas’ rivals have a beta of 0.49, suggesting that their average share price is 51% less volatile than the S&P 500.

Insider and Institutional Ownership

89.2% of Ventas shares are held by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are held by institutional investors. 1.3% of Ventas shares are held by company insiders. Comparatively, 1.9% of shares of all “Healthcare REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Ventas rivals beat Ventas on 12 of the 15 factors compared.

Ventas Company Profile

Ventas, Inc. is a real estate investment trust (REIT) with its properties located throughout the United States, Canada and the United Kingdom. The Company operates through three segments: triple-net leased properties, senior living operations and office operations. Under its triple-net leased properties segment, the Company invests in and owns seniors housing and healthcare properties throughout the United States and the United Kingdom and leases those properties to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses. In its senior living operations segment, it invests in seniors housing communities throughout the United States and Canada and engages independent operators to manage those communities. In its office operations segment, the Company primarily acquires, owns, develops, leases and manages medical office buildings (MOBs) and life science and innovation centers throughout the United States.

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