Welltower (NYSE: HCN) and Aviv REIT (NASDAQ:AVIV) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Institutional & Insider Ownership

85.9% of Welltower shares are held by institutional investors. 0.2% of Welltower shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 5.1%. Aviv REIT does not pay a dividend. Welltower pays out 108.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Aviv REIT has raised its dividend for 7 consecutive years.

Profitability

This table compares Welltower and Aviv REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Welltower 28.94% 8.74% 4.39%
Aviv REIT 25.04% 6.86% 2.80%

Valuation and Earnings

This table compares Welltower and Aviv REIT’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Welltower $4.19 billion 5.99 $2.05 billion $3.21 21.19
Aviv REIT N/A N/A N/A N/A N/A

Welltower has higher revenue and earnings than Aviv REIT.

Analyst Ratings

This is a summary of recent recommendations and price targets for Welltower and Aviv REIT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Welltower 2 8 6 0 2.25
Aviv REIT 0 0 0 0 N/A

Welltower presently has a consensus target price of $72.69, suggesting a potential upside of 6.88%. Given Welltower’s higher probable upside, equities analysts plainly believe Welltower is more favorable than Aviv REIT.

Summary

Welltower beats Aviv REIT on 9 of the 11 factors compared between the two stocks.

Welltower Company Profile

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.

Aviv REIT Company Profile

Aviv REIT, Inc. (AVIV) is a real estate investment trust (REIT). The Company is engaged in investments in healthcare properties, consisting primarily of skilled nursing facilities (SNFs), assisted living facilities (ALFs), and other healthcare properties located in the United States. It specializes in the ownership and triple-net leasing of post-acute and long-term care SNFs. Its leases include rent escalation provisions. The Company is the general partner of Aviv Healthcare Properties Limited Partnership. Its portfolio consists of approximately 346 properties, comprising 285 skilled nursing facilities, 35 assisted living facilities, 14 traumatic brain injury facilities, two long-term acute care hospitals, one neuro hospital, two independent living facilities, two medical office buildings, and five land parcels for development, with approximately 29,646 beds in 30 states triple-net leased to 37 operators.

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