HCP (NYSE: HCP) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it compare to its rivals? We will compare HCP to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, dividends, risk and institutional ownership.

Institutional & Insider Ownership

89.6% of HCP shares are held by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are held by institutional investors. 0.2% of HCP shares are held by company insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

HCP pays an annual dividend of $1.48 per share and has a dividend yield of 5.1%. HCP pays out 102.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.1% and pay out 124.4% of their earnings in the form of a dividend. HCP is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares HCP and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HCP 32.16% 9.96% 4.19%
HCP Competitors 23.19% 6.06% 2.82%

Valuation & Earnings

This table compares HCP and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
HCP $2.02 billion $1.17 billion 20.07
HCP Competitors $788.38 million $482.52 million 40.18

HCP has higher revenue and earnings than its rivals. HCP is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings for HCP and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HCP 1 12 2 0 2.07
HCP Competitors 203 832 677 12 2.29

HCP presently has a consensus target price of $32.33, suggesting a potential upside of 11.11%. As a group, “Healthcare REITs” companies have a potential upside of 0.30%. Given HCP’s higher probable upside, analysts clearly believe HCP is more favorable than its rivals.

Volatility & Risk

HCP has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, HCP’s rivals have a beta of 0.50, meaning that their average stock price is 50% less volatile than the S&P 500.

Summary

HCP beats its rivals on 9 of the 15 factors compared.

About HCP

HCP, Inc. is a self-administered real estate investment trust. The Company invests in real estate serving the healthcare industry in the United States. The Company’s segments include senior housing triple-net (SH NNN), senior housing operating portfolio (SHOP), life science and medical office. Its senior housing facilities include independent living facilities, assisted living facilities, memory care facilities, care homes, and continuing care retirement communities. Its Life science properties contain laboratory and office space for biotechnology, medical device and pharmaceutical companies, scientific research institutions, government agencies and other organizations. Its Medical office buildings contain physicians’ offices and examination rooms, and may include pharmacies, hospital ancillary service space and outpatient services. As of December 31, 2016, it had interests in and managed 15 hospitals, 61 care homes in the United Kingdom and five post-acute/skilled nursing facilities.

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