Critical Contrast: Ventas (VTR) & Healthcare Realty Trust (HR)
Ventas (NYSE: VTR) and Healthcare Realty Trust (NYSE:HR) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Earnings and Valuation
This table compares Ventas and Healthcare Realty Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ventas||$3.52 billion||6.69||$1.88 billion||$1.97||33.56|
|Healthcare Realty Trust||$418.53 million||9.58||$236.35 million||$1.05||30.86|
Ventas has higher revenue and earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Ventas, indicating that it is currently the more affordable of the two stocks.
This table compares Ventas and Healthcare Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Realty Trust||28.98%||7.38%||4.04%|
Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 4.7%. Healthcare Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Ventas pays out 157.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust has increased its dividend for 6 consecutive years.
Insider and Institutional Ownership
88.6% of Ventas shares are held by institutional investors. Comparatively, 96.2% of Healthcare Realty Trust shares are held by institutional investors. 1.3% of Ventas shares are held by insiders. Comparatively, 1.9% of Healthcare Realty Trust shares 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.
Volatility & Risk
Ventas has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Ventas and Healthcare Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Realty Trust||1||5||4||0||2.30|
Ventas currently has a consensus target price of $62.33, indicating a potential downside of 5.73%. Healthcare Realty Trust has a consensus target price of $34.50, indicating a potential upside of 6.48%. Given Healthcare Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Healthcare Realty Trust is more favorable than Ventas.
Healthcare Realty Trust beats Ventas on 13 of the 17 factors compared between the two stocks.
Ventas, Inc. is a real estate investment trust (REIT) with its properties located throughout the United States, Canada and the United Kingdom. The Company operates through three segments: triple-net leased properties, senior living operations and office operations. Under its triple-net leased properties segment, the Company invests in and owns seniors housing and healthcare properties throughout the United States and the United Kingdom and leases those properties to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses. In its senior living operations segment, it invests in seniors housing communities throughout the United States and Canada and engages independent operators to manage those communities. In its office operations segment, the Company primarily acquires, owns, develops, leases and manages medical office buildings (MOBs) and life science and innovation centers throughout the United States.
About Healthcare Realty Trust
Healthcare Realty Trust Incorporated is a self-managed and self-administered real estate investment trust. The Company owns, leases, manages, acquires, finances, develops and redevelops real estate properties associated primarily with the delivery of outpatient healthcare services across the United States. The Company provided property management services for 146 healthcare-related properties across the nation, totaling approximately 10.3 million square feet, as of December 31, 2016. As of December 31, 2016, the Company’s 202 owned real estate properties were located in 27 states and totaled approximately 14.6 million square feet. The Company’s medical office/outpatient facilities are located in various states of the United States, such as Alabama, Arizona, California, Colorado, District of Columbia, Florida, Hawaii, Illinois, Indiana, Iowa, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee, Texas, Virginia and Washington.
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