Head to Head Contrast: Ventas (VTR) vs. Its Competitors

Ventas (NYSE: VTR) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it compare to its peers? We will compare Ventas to similar companies based on the strength of its analyst recommendations, institutional ownership, profitability, risk, valuation, dividends and earnings.

Dividends

Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 5.0%. Ventas pays out 157.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.3% and pay out 125.0% of their earnings in the form of a dividend. Ventas has increased its dividend for 6 consecutive years. Ventas lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Ventas and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ventas $3.52 billion $1.88 billion 31.73
Ventas Competitors $788.38 million $482.52 million 37.92

Ventas has higher revenue and earnings than its peers. Ventas is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ventas and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ventas 4 7 1 0 1.75
Ventas Competitors 132 727 646 12 2.35

Ventas presently has a consensus target price of $63.67, indicating a potential upside of 1.87%. As a group, “Healthcare REITs” companies have a potential upside of 6.02%. Given Ventas’ peers stronger consensus rating and higher probable upside, analysts clearly believe Ventas has less favorable growth aspects than its peers.

Volatility and Risk

Ventas has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500. Comparatively, Ventas’ peers have a beta of 0.49, indicating that their average share price is 51% less volatile than the S&P 500.

Profitability

This table compares Ventas and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ventas 20.08% 6.31% 2.81%
Ventas Competitors 36.68% 8.02% 4.00%

Insider and Institutional Ownership

89.1% of Ventas shares are held by institutional investors. Comparatively, 84.1% of shares of all “Healthcare REITs” companies are held by institutional investors. 1.3% of Ventas shares are held by insiders. Comparatively, 1.9% of shares of all “Healthcare REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Ventas peers beat Ventas on 12 of the 15 factors compared.

About Ventas

Ventas, Inc. is a real estate investment trust (REIT) with its properties located throughout the United States, Canada and the United Kingdom. The Company operates through three segments: triple-net leased properties, senior living operations and office operations. Under its triple-net leased properties segment, the Company invests in and owns seniors housing and healthcare properties throughout the United States and the United Kingdom and leases those properties to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses. In its senior living operations segment, it invests in seniors housing communities throughout the United States and Canada and engages independent operators to manage those communities. In its office operations segment, the Company primarily acquires, owns, develops, leases and manages medical office buildings (MOBs) and life science and innovation centers throughout the United States.

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