Ventas (NYSE:VTR – Get Free Report) and Chartwell Retirement Residences (OTCMKTS:CWSRF – Get Free Report) are both real estate companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Institutional and Insider Ownership
93.5% of Ventas shares are held by institutional investors. Comparatively, 37.8% of Chartwell Retirement Residences shares are held by institutional investors. 1.3% of Ventas shares are held by 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
Ventas pays an annual dividend of $1.80 per share and has a dividend yield of 4.0%. Chartwell Retirement Residences pays an annual dividend of $0.45 per share and has a dividend yield of 5.7%. Ventas pays out 18,018.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chartwell Retirement Residences pays out -1,611.6% of its earnings in the form of a dividend. Chartwell Retirement Residences is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Ventas | $4.13 billion | 4.34 | -$47.45 million | $0.01 | 4,458.46 |
Chartwell Retirement Residences | N/A | N/A | N/A | ($0.03) | -284.18 |
Chartwell Retirement Residences has lower revenue, but higher earnings than Ventas. Chartwell Retirement Residences is trading at a lower price-to-earnings ratio than Ventas, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Ventas and Chartwell Retirement Residences, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Ventas | 0 | 3 | 8 | 0 | 2.73 |
Chartwell Retirement Residences | 0 | 0 | 1 | 0 | 3.00 |
Ventas presently has a consensus target price of $50.62, indicating a potential upside of 13.64%. Chartwell Retirement Residences has a consensus target price of $13.50, indicating a potential upside of 70.13%. Given Chartwell Retirement Residences’ stronger consensus rating and higher possible upside, analysts plainly believe Chartwell Retirement Residences is more favorable than Ventas.
Profitability
This table compares Ventas and Chartwell Retirement Residences’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Ventas | 0.11% | 0.05% | 0.02% |
Chartwell Retirement Residences | N/A | N/A | N/A |
Summary
Ventas beats Chartwell Retirement Residences on 9 of the 13 factors compared between the two stocks.
About Ventas
Ventas Inc., an S&P 500 company, operates at the intersection of two large and dynamic industries healthcare and real estate. Fueled by powerful demographic demand from growth in the aging population, Ventas owns or has investments in a highly diversified portfolio of approximately 1,400 properties in the United States, Canada, and the United Kingdom. Ventas uses the power of its capital to unlock the value of senior housing communities, outpatient medical buildings, research centers, hospitals and other healthcare facilities. A globally-recognized real estate investment trust, Ventas follows a successful long-term strategy, proven over more than 20 years, built on diversification of property types, capital sources and industry leading partners, financial strength and flexibility, consistent and reliable growth and industry leading ESG achievements, managed by a collaborative and experienced team dedicated to its stakeholders.
About Chartwell Retirement Residences
Chartwell is in the business of serving and caring for Canada's seniors, committed to its vision of Making People's Lives BETTER and to providing a happier, healthier, and more fulfilling life experience for its residents. Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent living through to assisted living and long term care. Chartwell is the largest operator in Canada, serving over 25,000 residents in four provinces across the country.
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