Comparing Physicians Realty Trust (DOC) & Welltower (HCN)
Physicians Realty Trust (NYSE: DOC) and Welltower (NYSE:HCN) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitabiliy, analyst recommendations, valuation, earnings, risk and dividends.
Physicians Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 4.2%. Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 4.6%. Physicians Realty Trust pays out 409.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower pays out 107.4% 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 has increased its dividend for 7 consecutive years. Welltower is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Physicians Realty Trust has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Welltower has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Physicians Realty Trust and Welltower, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Physicians Realty Trust||0||4||10||1||2.80|
Physicians Realty Trust currently has a consensus price target of $21.75, indicating a potential upside of 2.35%. Welltower has a consensus price target of $73.31, indicating a potential downside of 3.86%. Given Physicians Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Physicians Realty Trust is more favorable than Welltower.
Valuation & Earnings
This table compares Physicians Realty Trust and Welltower’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Physicians Realty Trust||$272.80 million||11.94||$180.01 million||$0.22||96.60|
|Welltower||$4.20 billion||6.65||$2.09 billion||$3.24||23.53|
Welltower has higher revenue and earnings than Physicians Realty Trust. Welltower is trading at a lower price-to-earnings ratio than Physicians Realty Trust, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
92.5% of Physicians Realty Trust shares are owned by institutional investors. Comparatively, 88.2% of Welltower shares are owned by institutional investors. 0.5% of Physicians Realty Trust shares are owned by company insiders. Comparatively, 0.2% of Welltower shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Physicians Realty Trust and Welltower’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Physicians Realty Trust||11.42%||1.68%||1.11%|
Physicians Realty Trust Company Profile
Physicians Realty Trust (the Trust) is a real estate investment trust. Physicians Realty L.P. is the operating partnership of the Trust. The Trust and its operating partnership are engaged in acquiring, developing, owning and managing healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. As of December 31, 2016, the Company’s portfolio consisted of 246 properties located in 29 states with approximately 10,883,601 net leasable square feet. The Company invests in real estate that is integral to providing healthcare services. The Company focuses its investment activity on various types of healthcare properties, such as medical office buildings; outpatient treatment and diagnostic facilities; physician group practice clinics; ambulatory surgery centers, and specialty hospitals and treatment centers. Its properties include Arrowhead Commons, Aurora Medical Office Building, Decatur Medical Office Building and El Paso Medical Office Building.
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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