The Critical Survey: Welltower (HCN) versus Aviv REIT (AVIV)

The Critical Survey: Welltower (HCN) versus Aviv REIT (AVIV)

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

Profitability

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

Analyst Recommendations

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

Welltower currently has a consensus target price of $72.69, indicating a potential upside of 6.59%. Given Welltower’s higher possible upside, research analysts clearly believe Welltower is more favorable than Aviv REIT.

Insider and Institutional Ownership

85.9% of Welltower shares are owned by institutional investors. 0.2% of Welltower shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 5.1%. Aviv REIT does not pay a dividend. 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. Aviv REIT has increased its dividend for 7 consecutive years.

Earnings and Valuation

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

Welltower has higher revenue and earnings than Aviv REIT.

Summary

Welltower beats Aviv REIT on 9 of the 11 factors compared between the two stocks.

About Welltower

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.

About Aviv REIT

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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