Comparing NETSTREIT (NYSE:NTST) and Welltower (NYSE:WELL)

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

Institutional and Insider Ownership

94.8% of Welltower shares are held by institutional investors. 0.7% of NETSTREIT shares are held by insiders. Comparatively, 0.4% of Welltower shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares NETSTREIT and Welltower”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$195.01 million	9.79	$6.90 million	$0.13	150.95
Welltower	$10.84 billion	13.02	$936.84 million	$2.02	98.99

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

Risk & Volatility

NETSTREIT has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Welltower has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NETSTREIT	5.29%	0.78%	0.43%
Welltower	11.96%	3.45%	2.25%

Dividends

NETSTREIT pays an annual dividend of $0.88 per share and has a dividend yield of 4.5%. Welltower pays an annual dividend of $2.96 per share and has a dividend yield of 1.5%. NETSTREIT pays out 676.9% 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 pays out 146.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT has raised its dividend for 1 consecutive years and Welltower has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for NETSTREIT and Welltower, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	3	13	0	2.81
Welltower	0	2	12	1	2.93

NETSTREIT currently has a consensus price target of $22.52, indicating a potential upside of 14.75%. Welltower has a consensus price target of $231.60, indicating a potential upside of 15.83%. Given Welltower’s stronger consensus rating and higher possible upside, analysts clearly believe Welltower is more favorable than NETSTREIT.

Summary

Welltower beats NETSTREIT on 13 of the 18 factors compared between the two stocks.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

About Welltower

Welltower Inc. (NYSE:WELL), a real estate investment trust (“REIT”) and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people’s wellness and overall health care experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.