Critical Review: Diversified Healthcare Trust (NASDAQ:DHCNI) & Ventas (NYSE:VTR)
by Michael Walen · The Markets DailyVentas (NYSE:VTR – Get Free Report) and Diversified Healthcare Trust (NASDAQ:DHCNI – Get Free Report) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Institutional and Insider Ownership
94.2% of Ventas shares are held by institutional investors. 0.5% of Ventas shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Ventas and Diversified Healthcare Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ventas | 4.08% | 1.99% | 0.94% |
| Diversified Healthcare Trust | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Ventas and Diversified Healthcare Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ventas | 0 | 3 | 14 | 0 | 2.82 |
| Diversified Healthcare Trust | 0 | 0 | 0 | 0 | 0.00 |
Ventas currently has a consensus price target of $98.00, suggesting a potential upside of 6.78%. Given Ventas’ stronger consensus rating and higher possible upside, research analysts plainly believe Ventas is more favorable than Diversified Healthcare Trust.
Earnings and Valuation
This table compares Ventas and Diversified Healthcare Trust”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ventas | $5.83 billion | 8.07 | $251.38 million | $0.54 | 169.96 |
| Diversified Healthcare Trust | N/A | N/A | N/A | N/A | N/A |
Ventas has higher revenue and earnings than Diversified Healthcare Trust.
Summary
Ventas beats Diversified Healthcare Trust on 9 of the 9 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.