Welltower (NYSE:WELL) & Healthcare Trust (NASDAQ:HTIA) Financial Review
by Mitch Edgeman · The Markets DailyHealthcare Trust (NASDAQ:HTIA – Get Free Report) and Welltower (NYSE:WELL – Get Free Report) are both real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Dividends
Healthcare Trust pays an annual dividend of $1.84 per share and has a dividend yield of 7.3%. Welltower pays an annual dividend of $2.96 per share and has a dividend yield of 1.3%. Welltower pays out 135.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower has increased its dividend for 2 consecutive years.
Institutional & Insider Ownership
94.8% of Welltower shares are owned by institutional investors. 0.4% of Welltower shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Healthcare Trust and Welltower’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Healthcare Trust | N/A | N/A | N/A |
| Welltower | 12.15% | 3.56% | 2.35% |
Analyst Ratings
This is a summary of recent ratings for Healthcare Trust and Welltower, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Healthcare Trust | 0 | 0 | 0 | 0 | 0.00 |
| Welltower | 0 | 3 | 14 | 0 | 2.82 |
Welltower has a consensus price target of $246.11, suggesting a potential upside of 7.03%. Given Welltower’s stronger consensus rating and higher possible upside, analysts plainly believe Welltower is more favorable than Healthcare Trust.
Earnings & Valuation
This table compares Healthcare Trust and Welltower”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Healthcare Trust | $352.84 million | N/A | N/A | N/A | N/A |
| Welltower | $10.84 billion | 15.29 | $936.84 million | $2.18 | 105.48 |
Welltower has higher revenue and earnings than Healthcare Trust.
Summary
Welltower beats Healthcare Trust on 10 of the 12 factors compared between the two stocks.
About Healthcare Trust
Healthcare Trust, Inc. is a publicly registered real estate investment trust focused on acquiring a diversified portfolio of healthcare real estate, with an emphasis on seniors housing and medical office buildings, located in the United States.
About Welltower
Welltower Inc. (NYSE:WELL), a real estate investment trust (“REIT”) and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people’s wellness and overall health care experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.