Welltower (NYSE:WELL) and Weyerhaeuser (NYSE:WY) are both large-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Welltower and Weyerhaeuser, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Welltower | 2 | 14 | 6 | 0 | 2.18 |
Weyerhaeuser | 0 | 3 | 5 | 0 | 2.63 |
Welltower currently has a consensus target price of $60.5750, indicating a potential downside of 3.96%. Weyerhaeuser has a consensus target price of $30.50, indicating a potential downside of 8.16%. Given Welltower's higher possible upside, equities analysts clearly believe Welltower is more favorable than Weyerhaeuser.
Dividends
Welltower pays an annual dividend of $2.44 per share and has a dividend yield of 3.9%. Weyerhaeuser pays an annual dividend of $0.68 per share and has a dividend yield of 2.0%. Welltower pays out 58.7% of its earnings in the form of a dividend. Weyerhaeuser pays out 174.4% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Welltower and Weyerhaeuser's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Welltower | $5.12 billion | 5.14 | $1.23 billion | $4.16 | 15.16 |
Weyerhaeuser | $6.55 billion | 3.78 | $-76,000,000.00 | $0.39 | 85.15 |
Welltower has higher earnings, but lower revenue than Weyerhaeuser. Welltower is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Welltower and Weyerhaeuser's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Welltower | 26.20% | 8.64% | 4.39% |
Weyerhaeuser | 4.67% | 3.59% | 1.78% |
Risk and Volatility
Welltower has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.
Insider & Institutional Ownership
89.2% of Welltower shares are held by institutional investors. Comparatively, 77.5% of Weyerhaeuser shares are held by institutional investors. 0.2% of Welltower shares are held by company insiders. Comparatively, 0.3% of Weyerhaeuser shares are held by company 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
Welltower beats Weyerhaeuser on 11 of the 16 factors compared between the two stocks.