Welltower (NYSE: WELL) and Physicians Realty Trust (NYSE:DOC) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.
Volatility and Risk
Welltower has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Physicians Realty Trust has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.
This table compares Welltower and Physicians Realty Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Welltower||$4.32 billion||4.61||$522.77 million||$0.32||167.28|
|Physicians Realty Trust||$343.58 million||7.99||$38.14 million||$0.23||65.65|
Welltower has higher revenue and earnings than Physicians Realty Trust. Physicians Realty Trust is trading at a lower price-to-earnings ratio than Welltower, indicating that it is currently the more affordable of the two stocks.
This table compares Welltower and Physicians Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Physicians Realty Trust||11.04%||1.63%||1.02%|
Institutional & Insider Ownership
86.1% of Welltower shares are held by institutional investors. Comparatively, 94.1% of Physicians Realty Trust shares are held by institutional investors. 0.2% of Welltower shares are held by company insiders. Comparatively, 0.5% of Physicians Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 6.5%. Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 6.1%. Welltower pays out 1,087.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Physicians Realty Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current recommendations and price targets for Welltower and Physicians Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Physicians Realty Trust||0||4||11||0||2.73|
Welltower presently has a consensus target price of $65.69, indicating a potential upside of 22.72%. Physicians Realty Trust has a consensus target price of $18.64, indicating a potential upside of 23.46%. Given Physicians Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Physicians Realty Trust is more favorable than Welltower.
Welltower Company Profile
Welltower Inc. invests with seniors housing operators, post-acute providers and health systems to fund real estate and infrastructure. The Company invests in seniors housing and healthcare real estate. It operates in three segments: triple-net, seniors housing operating and outpatient medical. Welltower, a real estate investment trust (REIT), owns interests in properties concentrated in markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities, and outpatient medical properties. Its triple-net properties include independent living facilities, independent supportive living facilities (Canada), continuing care retirement communities, assisted living facilities, care homes with and without nursing (the United Kingdom), Alzheimer’s/dementia care facilities, long-term/post-acute care facilities and hospitals. Its outpatient medical properties include outpatient medical buildings.
Physicians Realty Trust Company Profile
Physicians Realty Trust (the Trust) is a real estate investment trust. Physicians Realty L.P. is the operating partnership of the Trust. The Trust and its operating partnership are engaged in acquiring, developing, owning and managing healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. As of December 31, 2016, the Company’s portfolio consisted of 246 properties located in 29 states with approximately 10,883,601 net leasable square feet. The Company invests in real estate that is integral to providing healthcare services. The Company focuses its investment activity on various types of healthcare properties, such as medical office buildings; outpatient treatment and diagnostic facilities; physician group practice clinics; ambulatory surgery centers, and specialty hospitals and treatment centers. Its properties include Arrowhead Commons, Aurora Medical Office Building, Decatur Medical Office Building and El Paso Medical Office Building.
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