Omega Healthcare Investors (NYSE:OHI) vs. Welltower (NYSE:WELL) Head to Head Comparison

Omega Healthcare Investors (NYSE:OHI) and Welltower (NYSE:WELL) are both large-cap real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Risk & Volatility

Omega Healthcare Investors has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Welltower has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Omega Healthcare Investors and Welltower’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	66.96%	15.76%	8.40%
Welltower	12.15%	3.56%	2.35%

Insider & Institutional Ownership

65.2% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 94.8% of Welltower shares are owned by institutional investors. 1.7% of Omega Healthcare Investors shares are owned by insiders. Comparatively, 0.4% of Welltower shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.9%. Welltower pays an annual dividend of $3.40 per share and has a dividend yield of 1.4%. Omega Healthcare Investors pays out 97.1% 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 156.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower has raised its dividend for 2 consecutive years. Omega Healthcare Investors is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Omega Healthcare Investors and Welltower, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	7	0	2.31
Welltower	0	3	15	2	2.95

Omega Healthcare Investors presently has a consensus target price of $49.93, indicating a potential upside of 7.99%. Welltower has a consensus target price of $255.86, indicating a potential upside of 7.80%. Given Omega Healthcare Investors’ higher possible upside, analysts clearly believe Omega Healthcare Investors is more favorable than Welltower.

Valuation & Earnings

This table compares Omega Healthcare Investors and Welltower”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.19 billion	11.77	$572.03 million	$2.80	16.51
Welltower	$10.84 billion	15.78	$936.84 million	$2.18	108.87

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

Summary

Welltower beats Omega Healthcare Investors on 10 of the 18 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

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.