Welltower (WELL) vs. Its Rivals Financial Review

Welltower (NYSE: WELL) is one of 23 publicly-traded companies in the “Healthcare REITs” industry, but how does it weigh in compared to its rivals? We will compare Welltower to similar businesses based on the strength of its profitability, earnings, institutional ownership, risk, dividends, valuation and analyst recommendations.

Profitability

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This table compares Welltower and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Welltower 12.13% 4.35% 2.24%
Welltower Competitors 37.24% 7.82% 3.84%

Earnings and Valuation

This table compares Welltower and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Welltower $4.32 billion $522.77 million 168.75
Welltower Competitors $837.61 million $168.57 million 177.70

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

Dividends

Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 6.4%. Welltower pays out 1,087.5% 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 6.3% and pay out 148.0% of their earnings in the form of a dividend.

Insider and Institutional Ownership

86.1% of Welltower shares are held by institutional investors. Comparatively, 83.8% of shares of all “Healthcare REITs” companies are held by institutional investors. 0.2% of Welltower shares are held by insiders. Comparatively, 6.5% of shares of all “Healthcare REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Welltower has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Welltower’s rivals have a beta of 0.49, suggesting that their average share price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Welltower and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Welltower 2 8 5 0 2.20
Welltower Competitors 169 838 740 12 2.34

Welltower currently has a consensus target price of $65.31, suggesting a potential upside of 20.94%. As a group, “Healthcare REITs” companies have a potential upside of 13.87%. Given Welltower’s higher possible upside, analysts plainly believe Welltower is more favorable than its rivals.

Summary

Welltower rivals beat Welltower on 10 of the 15 factors compared.

About Welltower

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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