Financial Survey: Welltower (NYSE:WELL) vs. Kimco Realty (NYSE:KIM)

Welltower (NYSE:WELL) and Kimco Realty (NYSE:KIM) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Dividends

Welltower pays an annual dividend of $2.68 per share and has a dividend yield of 2.1%. Kimco Realty pays an annual dividend of $1.00 per share and has a dividend yield of 4.1%. Welltower pays out 176.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Welltower and Kimco Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Welltower	$7.35 billion	10.94	$340.09 million	$1.52	85.02
Kimco Realty	$1.96 billion	8.34	$654.27 million	$0.55	44.18

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

Analyst Ratings

This is a breakdown of recent recommendations for Welltower and Kimco Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Welltower	0	4	6	2	2.83
Kimco Realty	0	9	5	2	2.56

Welltower presently has a consensus price target of $125.86, indicating a potential downside of 2.60%. Kimco Realty has a consensus price target of $24.70, indicating a potential upside of 1.65%. Given Kimco Realty’s higher possible upside, analysts plainly believe Kimco Realty is more favorable than Welltower.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Welltower	12.22%	3.20%	2.00%
Kimco Realty	19.58%	3.68%	1.99%

Risk and Volatility

Welltower has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Kimco Realty has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Institutional & Insider Ownership

94.8% of Welltower shares are owned by institutional investors. Comparatively, 89.3% of Kimco Realty shares are owned by institutional investors. 0.1% of Welltower shares are owned by company insiders. Comparatively, 2.2% of Kimco Realty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Welltower beats Kimco Realty on 9 of the 16 factors compared between the two stocks.

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.

About Kimco Realty

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.