Contrasting Welltower (HCN) & Its Rivals
Welltower (NYSE: HCN) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it weigh in compared to its peers? We will compare Welltower to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
This table compares Welltower and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Welltower and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Welltower currently has a consensus target price of $72.69, indicating a potential upside of 4.68%. As a group, “Healthcare REITs” companies have a potential upside of 2.82%. Given Welltower’s higher probable upside, research analysts clearly believe Welltower is more favorable than its peers.
Volatility and Risk
Welltower has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Welltower’s peers have a beta of 0.49, indicating that their average stock price is 51% less volatile than the S&P 500.
Valuation & Earnings
This table compares Welltower and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Welltower||$4.19 billion||$2.05 billion||21.63|
|Welltower Competitors||$863.81 million||$523.61 million||39.30|
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.
Institutional and Insider Ownership
85.9% of Welltower shares are owned by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are owned by institutional investors. 0.2% of Welltower shares are owned by insiders. Comparatively, 1.9% of shares of all “Healthcare REITs” companies are owned by 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.
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 125.2% of their earnings in the form of a dividend. Welltower has raised its dividend for 7 consecutive years.
Welltower peers beat Welltower on 8 of the 15 factors compared.
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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