Head to Head Review: Welltower (HCN) & Aviv REIT (AVIV)

Welltower (NYSE: HCN) and Aviv REIT (NYSE:AVIV) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

86.5% of Welltower shares are held by institutional investors. 0.2% of Welltower shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Welltower and Aviv REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Welltower 2 6 5 0 2.23
Aviv REIT 0 0 0 0 N/A

Welltower currently has a consensus target price of $72.36, suggesting a potential upside of 22.05%. Given Welltower’s higher possible upside, research analysts clearly believe Welltower is more favorable than Aviv REIT.

Dividends

Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 5.9%. Aviv REIT does not pay a dividend. Welltower pays out 140.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Aviv REIT has increased its dividend for 8 consecutive years.

Profitability

This table compares Welltower and Aviv REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Welltower 22.67% 7.45% 3.82%
Aviv REIT 25.04% 6.86% 2.80%

Valuation and Earnings

This table compares Welltower and Aviv REIT’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Welltower $4.28 billion 5.13 $1.08 billion $2.48 23.91
Aviv REIT N/A N/A N/A $0.75 48.91

Welltower has higher revenue and earnings than Aviv REIT. Welltower is trading at a lower price-to-earnings ratio than Aviv REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Welltower beats Aviv REIT on 9 of the 13 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.

Aviv REIT Company Profile

Aviv REIT, Inc. (AVIV) is a real estate investment trust (REIT). The Company is engaged in investments in healthcare properties, consisting primarily of skilled nursing facilities (SNFs), assisted living facilities (ALFs), and other healthcare properties located in the United States. It specializes in the ownership and triple-net leasing of post-acute and long-term care SNFs. Its leases include rent escalation provisions. The Company is the general partner of Aviv Healthcare Properties Limited Partnership. Its portfolio consists of approximately 346 properties, comprising 285 skilled nursing facilities, 35 assisted living facilities, 14 traumatic brain injury facilities, two long-term acute care hospitals, one neuro hospital, two independent living facilities, two medical office buildings, and five land parcels for development, with approximately 29,646 beds in 30 states triple-net leased to 37 operators.

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