Critical Comparison: Ventas (NYSE:VTR) and FrontView REIT (NYSE:FVR)

Ventas (NYSE:VTR) and FrontView REIT (NYSE:FVR) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Ventas and FrontView REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ventas	0	3	13	0	2.81
FrontView REIT	2	3	2	1	2.25

Ventas presently has a consensus target price of $90.47, indicating a potential upside of 10.32%. FrontView REIT has a consensus target price of $16.58, indicating a potential upside of 8.74%. Given Ventas’ stronger consensus rating and higher possible upside, research analysts clearly believe Ventas is more favorable than FrontView REIT.

Profitability

This table compares Ventas and FrontView REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ventas	4.31%	2.09%	0.94%
FrontView REIT	-5.71%	-0.76%	-0.45%

Insider and Institutional Ownership

94.2% of Ventas shares are held by institutional investors. 0.8% of Ventas shares are held by insiders. Comparatively, 4.3% of FrontView REIT shares are held by 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

Ventas pays an annual dividend of $2.08 per share and has a dividend yield of 2.5%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 5.6%. Ventas pays out 385.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FrontView REIT pays out -390.9% of its earnings in the form of a dividend. Ventas has raised its dividend for 1 consecutive years. FrontView REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Ventas and FrontView REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ventas	$5.83 billion	6.68	$251.38 million	$0.54	151.86
FrontView REIT	$67.11 million	5.07	-$3.83 million	($0.22)	-69.32

Ventas has higher revenue and earnings than FrontView REIT. FrontView REIT is trading at a lower price-to-earnings ratio than Ventas, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Ventas has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Summary

Ventas beats FrontView REIT on 13 of the 18 factors compared between the two stocks.

About Ventas

Ventas Inc. (NYSE: VTR) is a leading S&P 500 real estate investment trust focused on delivering strong, sustainable shareholder returns by enabling exceptional environments that benefit a large and growing aging population. The Company's growth is fueled by its senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas leverages its unmatched operational expertise, data-driven insights from its Ventas Operational InsightsTM platform, extensive relationships and strong financial position to achieve its goal of delivering outsized performance across approximately 1,400 properties. The Ventas portfolio is composed of senior housing communities, outpatient medical buildings, research centers and healthcare facilities in North America and the United Kingdom. The Company benefits from a seasoned team of talented professionals who share a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives.

About FrontView REIT

FrontView REIT specializes in real estate investing.