Analyzing Aviv REIT (AVIV) & Ventas (VTR)
Aviv REIT (NYSE: AVIV) and Ventas (NYSE:VTR) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. Aviv REIT does not pay a dividend. Ventas pays out 184.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Aviv REIT has raised its dividend for 6 consecutive years and Ventas has raised its dividend for 3 consecutive years.
90.4% of Ventas shares are owned by institutional investors. 1.3% of Ventas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings for Aviv REIT and Ventas, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ventas has a consensus target price of $64.25, suggesting a potential upside of 2.28%. Given Ventas’ higher probable upside, analysts clearly believe Ventas is more favorable than Aviv REIT.
Valuation and Earnings
This table compares Aviv REIT and Ventas’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ventas||$3.44 billion||6.50||$649.23 million||$1.68||37.39|
Ventas has higher revenue and earnings than Aviv REIT. Ventas is trading at a lower price-to-earnings ratio than Aviv REIT, indicating that it is currently the more affordable of the two stocks.
This table compares Aviv REIT and Ventas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ventas beats Aviv REIT on 9 of the 12 factors compared between the two stocks.
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.
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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