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

Profitability

This table compares HCP and its competitors’ 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% 8.11% 4.09%

Dividends

HCP pays an annual dividend of $1.48 per share and has a dividend yield of 5.6%. 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 5.2% and pay out 125.2% of their earnings in the form of a dividend. HCP is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

89.6% of HCP shares are owned by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are owned by institutional investors. 0.2% of HCP shares are owned by company insiders. Comparatively, 1.9% of shares of all “Healthcare REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

HCP has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, HCP’s competitors have a beta of 0.49, meaning that their average stock price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for HCP and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HCP 1 13 1 0 2.00
HCP Competitors 128 709 642 12 2.36

HCP currently has a consensus target price of $31.83, indicating a potential upside of 20.31%. As a group, “Healthcare REITs” companies have a potential upside of 3.77%. Given HCP’s higher possible upside, analysts plainly believe HCP is more favorable than its competitors.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
HCP $2.02 billion $1.17 billion 18.25
HCP Competitors $788.38 million $482.52 million 38.98

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

Summary

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

HCP Company Profile

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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