Seritage Growth Properties (NYSE:SRG) and Welltower (NYSE:WELL) Head to Head Contrast

Welltower (NYSE:WELL) and Seritage Growth Properties (NYSE:SRG) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Risk & Volatility

Welltower has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500.

Valuation & Earnings

This table compares Welltower and Seritage Growth Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Welltower	$7.99 billion	14.44	$951.68 million	$1.77	97.49
Seritage Growth Properties	$16.89 million	13.51	-$153.54 million	($1.59)	-2.55

Welltower has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than Welltower, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

94.8% of Welltower shares are owned by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are owned by institutional investors. 0.2% of Welltower shares are owned by insiders. Comparatively, 0.6% of Seritage Growth Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Welltower pays an annual dividend of $2.96 per share and has a dividend yield of 1.7%. Seritage Growth Properties pays an annual dividend of $1.00 per share and has a dividend yield of 24.7%. Welltower pays out 167.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Seritage Growth Properties pays out -62.9% of its earnings in the form of a dividend. Welltower has raised its dividend for 2 consecutive years. Seritage Growth Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Welltower and Seritage Growth Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Welltower	1	1	9	1	2.83
Seritage Growth Properties	0	0	0	0	0.00

Welltower presently has a consensus price target of $179.42, indicating a potential upside of 3.97%. Given Welltower’s stronger consensus rating and higher probable upside, research analysts plainly believe Welltower is more favorable than Seritage Growth Properties.

Profitability

This table compares Welltower and Seritage Growth Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Welltower	12.18%	3.38%	2.16%
Seritage Growth Properties	-497.67%	-21.55%	-12.74%

Summary

Welltower beats Seritage Growth Properties on 14 of the 18 factors compared between the two stocks.

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.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.