Welltower vs Ventas Which Is More Reliable?

Welltower and Ventas are two leading real estate investment trusts (REITs) in the healthcare sector. Both companies specialize in owning and managing a portfolio of healthcare properties, including senior housing, medical offices, and hospitals. Investors often compare Welltower and Ventas stocks due to their similar business models and focus on providing essential healthcare real estate services. While both companies have experienced growth and success in the market, there are differences in their investment strategies and performance that make them unique opportunities for investors to consider.

Welltower or Ventas?

When comparing Welltower and Ventas, 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 Welltower and Ventas.

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. Welltower has a dividend yield of 1.98%, while Ventas has a dividend yield of 3.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Welltower reports a 5-year dividend growth of -6.85% year and a payout ratio of 160.04%. On the other hand, Ventas reports a 5-year dividend growth of -10.66% year and a payout ratio of -1101.78%.

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 Welltower P/E ratio at 86.20 and Ventas's P/E ratio at -373.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Welltower P/B ratio is 2.60 while Ventas's P/B ratio is 2.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Welltower has seen a 5-year revenue growth of 0.02%, while Ventas's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Welltower's ROE at 3.26% and Ventas's ROE at -0.70%.

Retail Investors:

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