Head to Head Survey: Healthcare Trust of America (HTA) and Welltower (HCN)
Healthcare Trust of America (NYSE: HTA) and Welltower (NYSE:HCN) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Institutional & Insider Ownership
93.4% of Healthcare Trust of America shares are held by institutional investors. Comparatively, 85.6% of Welltower shares are held by institutional investors. 1.5% of Healthcare Trust of America shares are held by insiders. Comparatively, 0.2% of Welltower shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Healthcare Trust of America pays an annual dividend of $1.20 per share and has a dividend yield of 4.1%. Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 4.9%. Healthcare Trust of America pays out 571.4% 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 108.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Trust of America has raised its dividend for 4 consecutive years and Welltower has raised its dividend for 7 consecutive years. Welltower is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Healthcare Trust of America and Welltower’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Healthcare Trust of America||$504.67 million||11.67||$301.67 million||$0.21||139.81|
|Welltower||$4.19 billion||6.20||$2.05 billion||$3.21||21.93|
Welltower has higher revenue and earnings than Healthcare Trust of America. Welltower is trading at a lower price-to-earnings ratio than Healthcare Trust of America, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Healthcare Trust of America and Welltower, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Trust of America||0||0||8||1||3.11|
Healthcare Trust of America currently has a consensus price target of $34.50, suggesting a potential upside of 17.51%. Welltower has a consensus price target of $73.15, suggesting a potential upside of 3.91%. Given Healthcare Trust of America’s stronger consensus rating and higher possible upside, equities analysts plainly believe Healthcare Trust of America is more favorable than Welltower.
This table compares Healthcare Trust of America and Welltower’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Trust of America||6.07%||1.42%||0.70%|
Volatility & Risk
Healthcare Trust of America has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Welltower has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.
Healthcare Trust of America Company Profile
Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.
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.
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