Welltower (NYSE:WELL) and Lamar Advertising (NASDAQ:LAMR) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
Risk & Volatility
Welltower has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Lamar Advertising has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.
90.5% of Welltower shares are held by institutional investors. Comparatively, 77.1% of Lamar Advertising shares are held by institutional investors. 0.2% of Welltower shares are held by company insiders. Comparatively, 15.0% of Lamar Advertising 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.
Welltower pays an annual dividend of $2.44 per share and has a dividend yield of 2.8%. Lamar Advertising pays an annual dividend of $3.00 per share and has a dividend yield of 2.9%. Welltower pays out 68.5% of its earnings in the form of a dividend. Lamar Advertising pays out 58.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Welltower has raised its dividend for 1 consecutive years and Lamar Advertising has raised its dividend for 1 consecutive years. Lamar Advertising is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings and recommmendations for Welltower and Lamar Advertising, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Welltower presently has a consensus price target of $77.16, suggesting a potential downside of 12.31%. Lamar Advertising has a consensus price target of $91.50, suggesting a potential downside of 12.43%. Given Welltower’s higher possible upside, research analysts plainly believe Welltower is more favorable than Lamar Advertising.
This table compares Welltower and Lamar Advertising’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Welltower and Lamar Advertising’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Welltower||$4.61 billion||7.98||$978.84 million||$3.56||24.72|
|Lamar Advertising||$1.57 billion||6.73||$243.39 million||$5.10||20.49|
Welltower has higher revenue and earnings than Lamar Advertising. Lamar Advertising is trading at a lower price-to-earnings ratio than Welltower, indicating that it is currently the more affordable of the two stocks.
Welltower beats Lamar Advertising on 9 of the 17 factors compared between the two stocks.
Welltower Inc. (NYSE:WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company 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. WelltowerÂ, a real estate investment trust ("REIT"), 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 Lamar Advertising
Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 357,500 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 3,600 displays.
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