Head-To-Head Analysis: Healthpeak Properties (NYSE:DOC) and Welltower (NYSE:WELL)

Healthpeak Properties (NYSE:DOC) and Welltower (NYSE:WELL) are both large-cap real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$2.82 billion	4.65	$71.35 million	$0.35	54.43
Welltower	$10.84 billion	15.87	$936.84 million	$2.31	101.48

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

Insider and Institutional Ownership

93.6% of Healthpeak Properties shares are owned by institutional investors. Comparatively, 94.8% of Welltower shares are owned by institutional investors. 0.2% of Healthpeak Properties shares are owned by company insiders. Comparatively, 0.4% of Welltower shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 6.4%. Welltower pays an annual dividend of $3.40 per share and has a dividend yield of 1.5%. Healthpeak Properties pays out 348.6% 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 pays out 147.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Healthpeak Properties and Welltower, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	0	14	4	0	2.22
Welltower	0	4	16	1	2.86

Healthpeak Properties currently has a consensus price target of $21.60, indicating a potential upside of 13.39%. Welltower has a consensus price target of $259.81, indicating a potential upside of 10.83%. Given Healthpeak Properties’ higher probable upside, analysts plainly believe Healthpeak Properties is more favorable than Welltower.

Profitability

This table compares Healthpeak Properties and Welltower’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	8.24%	2.79%	1.17%
Welltower	12.08%	3.61%	2.40%

Risk & Volatility

Healthpeak Properties has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Welltower has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Summary

Welltower beats Healthpeak Properties on 15 of the 18 factors compared between the two stocks.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.

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.