Welltower (HCN) versus Care Capital Properties (CCP) Head-To-Head Comparison
Welltower (NYSE: HCN) and Care Capital Properties (NYSE:CCP) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 5.1%. Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.6%. 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. Care Capital Properties pays out 121.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Care Capital Properties has raised its dividend for 7 consecutive years. Care Capital Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Welltower has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Care Capital Properties has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.
Valuation and Earnings
This table compares Welltower and Care Capital Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Welltower||$4.19 billion||6.00||$2.05 billion||$3.21||21.24|
|Care Capital Properties||N/A||N/A||N/A||$1.88||12.65|
Welltower has higher revenue and earnings than Care Capital Properties. Care Capital Properties is trading at a lower price-to-earnings ratio than Welltower, indicating that it is currently the more affordable of the two stocks.
This table compares Welltower and Care Capital Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Care Capital Properties||109.47%||40.07%||16.26%|
This is a summary of recent ratings and recommmendations for Welltower and Care Capital Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Care Capital Properties||0||3||0||0||2.00|
Welltower currently has a consensus price target of $72.69, indicating a potential upside of 6.63%. Care Capital Properties has a consensus price target of $22.50, indicating a potential downside of 5.38%. Given Welltower’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Welltower is more favorable than Care Capital Properties.
Institutional and Insider Ownership
85.8% of Welltower shares are held by institutional investors. Comparatively, 88.9% of Care Capital Properties shares are held by institutional investors. 0.2% of Welltower shares are held by company insiders. Comparatively, 1.7% of Care Capital Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Care Capital Properties beats Welltower on 8 of the 14 factors compared between the two stocks.
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.
Care Capital Properties Company Profile
Care Capital Properties, Inc. is a self-administered, self-managed real estate investment trust with a diversified portfolio of skilled nursing facilities (SNFs) and other healthcare assets operated by private regional and local care providers. The Company leases its properties to unaffiliated tenants under long-term triple-net leases, pursuant to which the tenants are obligated to pay all property-related expenses, including maintenance, utilities, repairs and taxes. It also manages a small portfolio of secured and unsecured loans, made primarily to its SNF operators and other post-acute care providers. As of December 31, 2016, its portfolio consisted of 345 properties operated by 38 private regional and local care providers, spread across 36 states and containing a total of approximately 38,000 beds/units. It conducts all of its operations through its operating partnership, Care Capital Properties, LP, and its subsidiaries.
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