Ventas vs Realty Income

Ventas and Realty Income are two prominent real estate investment trusts (REITs) that operate in the healthcare and retail sectors, respectively. Both companies offer investors the opportunity to invest in high-quality real estate assets with attractive dividend yields. Ventas focuses on healthcare properties, including senior housing, medical office buildings, and hospitals, while Realty Income owns a diverse portfolio of retail properties leased to a variety of tenants. Investors considering these stocks should evaluate the different risk and return profiles of the companies to determine which may be the better investment for their portfolios.

Ventas or Realty Income?

When comparing Ventas and Realty Income, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Ventas and Realty Income.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Ventas has a dividend yield of 2.8%, while Realty Income has a dividend yield of 4.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ventas reports a 5-year dividend growth of -10.66% year and a payout ratio of -463.46%. On the other hand, Realty Income reports a 5-year dividend growth of 3.00% year and a payout ratio of 286.57%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Ventas P/E ratio at -167.25 and Realty Income's P/E ratio at 65.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ventas P/B ratio is 2.73 while Realty Income's P/B ratio is 1.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ventas has seen a 5-year revenue growth of 0.06%, while Realty Income's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ventas's ROE at -1.64% and Realty Income's ROE at 2.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $64.16 for Ventas and $62.37 for Realty Income. Over the past year, Ventas's prices ranged from $40.98 to $65.65, with a yearly change of 60.20%. Realty Income's prices fluctuated between $45.04 and $63.74, with a yearly change of 41.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.