Ventas vs Welltower Which Outperforms?

Ventas, Inc. and Welltower Inc. are both prominent companies in the healthcare real estate sector, providing investors with opportunities to capitalize on the growing demand for senior housing and healthcare facilities. Ventas focuses on a diverse portfolio of properties, including senior housing, medical office buildings, and hospitals. On the other hand, Welltower specializes in senior housing and post-acute care properties. Both companies have experienced success in the market, but investors should carefully evaluate their financial performance, growth prospects, and competitive advantages before making investment decisions.

Ventas or Welltower?

When comparing Ventas and Welltower, 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 Welltower.

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 3.0%, while Welltower has a dividend yield of 1.98%. 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 -1101.78%. On the other hand, Welltower reports a 5-year dividend growth of -6.85% year and a payout ratio of 160.04%.

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 -373.51 and Welltower's P/E ratio at 86.20. 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 2.55 while Welltower's P/B ratio is 2.60.

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 Welltower's is 0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ventas's ROE at -0.70% and Welltower's ROE at 3.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $59.62 for Ventas and $127.90 for Welltower. Over the past year, Ventas's prices ranged from $41.45 to $67.61, with a yearly change of 63.11%. Welltower's prices fluctuated between $85.40 and $140.75, with a yearly change of 64.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.