Head to Head Analysis: Welltower (NYSE:WELL) vs. Boston Properties (NYSE:BXP)

Welltower (NYSE:WELL) and Boston Properties (NYSE:BXP) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Risk and Volatility

Welltower has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Boston Properties has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Dividends

Welltower pays an annual dividend of $2.68 per share and has a dividend yield of 1.7%. Boston Properties pays an annual dividend of $3.92 per share and has a dividend yield of 5.8%. Welltower pays out 171.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boston Properties pays out 3,920.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Welltower and Boston Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Welltower	11.91%	3.15%	2.00%
Boston Properties	0.38%	3.90%	1.24%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Welltower	$7.85 billion	12.51	$951.68 million	$1.56	98.23
Boston Properties	$3.41 billion	3.12	$14.27 million	$0.10	671.94

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

Insider and Institutional Ownership

94.8% of Welltower shares are held by institutional investors. Comparatively, 98.7% of Boston Properties shares are held by institutional investors. 0.1% of Welltower shares are held by company insiders. Comparatively, 1.4% of Boston Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Welltower and Boston Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Welltower	0	2	9	2	3.00
Boston Properties	1	5	7	0	2.46

Welltower currently has a consensus price target of $156.46, indicating a potential upside of 2.10%. Boston Properties has a consensus price target of $80.85, indicating a potential upside of 20.32%. Given Boston Properties’ higher probable upside, analysts clearly believe Boston Properties is more favorable than Welltower.

Summary

Welltower beats Boston Properties on 11 of the 17 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 Boston Properties

Boston Properties, Inc. (NYSE: BXP) (BXP or the Company) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets – Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by joint ventures, BXP's portfolio totals 53.3 million square feet and 188 properties, including 10 properties under construction/redevelopment. BXP's properties include 167 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its inhouse building management expertise and responsiveness to clients' needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner. BXP has earned a twelfth consecutive GRESB Green Star recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.