Welltower (NYSE:WELL – Get Free Report) and National Health Investors (NYSE:NHI – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Valuation and Earnings
This table compares Welltower and National Health Investors”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Welltower | $12.59 billion | 13.60 | $936.84 million | $2.18 | 108.98 |
| National Health Investors | $432.12 million | 8.40 | $142.18 million | $3.46 | 21.36 |
Volatility and Risk
Welltower has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, National Health Investors has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
Profitability
This table compares Welltower and National Health Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Welltower | 12.15% | 3.56% | 2.35% |
| National Health Investors | 38.56% | 10.89% | 5.88% |
Analyst Recommendations
This is a summary of current ratings and target prices for Welltower and National Health Investors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Welltower | 0 | 3 | 14 | 0 | 2.82 |
| National Health Investors | 1 | 2 | 5 | 0 | 2.50 |
Welltower currently has a consensus target price of $246.11, suggesting a potential upside of 3.60%. National Health Investors has a consensus target price of $83.86, suggesting a potential upside of 13.46%. Given National Health Investors’ higher probable upside, analysts clearly believe National Health Investors is more favorable than Welltower.
Institutional and Insider Ownership
94.8% of Welltower shares are held by institutional investors. Comparatively, 62.5% of National Health Investors shares are held by institutional investors. 0.4% of Welltower shares are held by company insiders. Comparatively, 2.7% of National Health Investors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Dividends
Welltower pays an annual dividend of $3.40 per share and has a dividend yield of 1.4%. National Health Investors pays an annual dividend of $3.76 per share and has a dividend yield of 5.1%. Welltower pays out 156.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Health Investors pays out 108.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower has increased its dividend for 2 consecutive years. National Health Investors is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Welltower beats National Health Investors on 9 of the 17 factors compared between the two stocks.
About Welltower
Welltower Inc. (NYSE:WELL), a real estate investment trust (“REIT”) and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower 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 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 National Health Investors
Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.
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