Welltower (NYSE:WELL – Get Free Report) and Healthpeak Properties (NYSE:DOC – Get Free Report) are both large-cap real estate companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Welltower and Healthpeak Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Welltower | 0 | 4 | 16 | 1 | 2.86 |
| Healthpeak Properties | 0 | 14 | 4 | 0 | 2.22 |
Welltower currently has a consensus target price of $259.81, indicating a potential upside of 10.83%. Healthpeak Properties has a consensus target price of $21.60, indicating a potential upside of 13.39%. Given Healthpeak Properties’ higher possible upside, analysts clearly believe Healthpeak Properties is more favorable than Welltower.
Insider & Institutional Ownership
94.8% of Welltower shares are owned by institutional investors. Comparatively, 93.6% of Healthpeak Properties shares are owned by institutional investors. 0.4% of Welltower shares are owned by company insiders. Comparatively, 0.2% of Healthpeak Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
Welltower pays an annual dividend of $3.40 per share and has a dividend yield of 1.5%. Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 6.4%. Welltower pays out 147.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthpeak Properties pays out 348.6% 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 raised its dividend for 2 consecutive years.
Risk and Volatility
Welltower has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Healthpeak Properties has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Profitability
This table compares Welltower and Healthpeak Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Welltower | 12.08% | 3.61% | 2.40% |
| Healthpeak Properties | 8.24% | 2.79% | 1.17% |
Earnings & Valuation
This table compares Welltower and Healthpeak Properties”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Welltower | $10.84 billion | 15.87 | $936.84 million | $2.31 | 101.48 |
| Healthpeak Properties | $2.82 billion | 4.65 | $71.35 million | $0.35 | 54.43 |
Welltower has higher revenue and earnings than Healthpeak Properties. Healthpeak 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 Healthpeak Properties on 15 of the 18 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 Healthpeak Properties
Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.
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