Ventas (NYSE: VTR) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it compare to its competitors? We will compare Ventas to related companies based on the strength of its dividends, analyst recommendations, earnings, risk, profitability, institutional ownership and valuation.

Volatility and Risk

Ventas has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, Ventas’ competitors have a beta of 0.50, indicating that their average stock price is 50% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ventas and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ventas $3.52 billion $1.88 billion 34.55
Ventas Competitors $788.38 million $482.52 million 39.93

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

Dividends

Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 4.6%. 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. As a group, “Healthcare REITs” companies pay a dividend yield of 5.1% and pay out 124.4% of their earnings in the form of a dividend. Ventas has raised its dividend for 6 consecutive years. Ventas lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

89.2% of Ventas shares are held by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are held by institutional investors. 1.3% of Ventas shares are held by insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ventas and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ventas 4 5 1 0 1.70
Ventas Competitors 203 832 678 12 2.29

Ventas presently has a consensus price target of $61.57, suggesting a potential downside of 9.55%. As a group, “Healthcare REITs” companies have a potential upside of 2.23%. Given Ventas’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Ventas has less favorable growth aspects than its competitors.

Profitability

This table compares Ventas and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ventas 20.08% 6.31% 2.81%
Ventas Competitors 38.21% 7.68% 3.77%

Summary

Ventas competitors beat Ventas on 12 of the 15 factors compared.

Ventas Company Profile

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.

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