Cousins Properties (NYSE:CUZ) and Welltower (NYSE:WELL) Critical Comparison

Welltower (NYSE:WELL) and Cousins Properties (NYSE:CUZ) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Welltower and Cousins Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Welltower 0 7 6 0 2.46
Cousins Properties 0 0 3 0 3.00

Welltower currently has a consensus price target of $83.33, indicating a potential downside of 0.87%. Cousins Properties has a consensus price target of $31.67, indicating a potential downside of 21.29%. Given Welltower’s higher probable upside, equities research analysts plainly believe Welltower is more favorable than Cousins Properties.

Institutional & Insider Ownership

89.5% of Welltower shares are owned by institutional investors. Comparatively, 96.5% of Cousins Properties shares are owned by institutional investors. 0.2% of Welltower shares are owned by insiders. Comparatively, 0.9% of Cousins Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock 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 4.1%. Cousins Properties pays an annual dividend of $1.16 per share and has a dividend yield of 2.9%. Welltower pays out 86.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cousins Properties pays out 46.0% of its earnings in the form of a dividend.

Risk & Volatility

Welltower has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Cousins Properties has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Welltower and Cousins Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Welltower 21.98% 7.58% 3.80%
Cousins Properties 9.50% 1.55% 1.02%

Earnings & Valuation

This table compares Welltower and Cousins Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Welltower $4.70 billion 7.25 $804.95 million $4.03 20.86
Cousins Properties $475.21 million 12.42 $79.16 million $2.52 15.96

Welltower has higher revenue and earnings than Cousins Properties. Cousins Properties is trading at a lower price-to-earnings ratio than Welltower, indicating that it is currently the more affordable of the two stocks.

Summary

Welltower beats Cousins Properties on 10 of the 16 factors compared between the two stocks.

About Welltower

Welltower Inc. (NYSE:WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower™, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.

About Cousins Properties

Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office towers located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets and opportunistic investments.

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