Analyzing Omega Healthcare Investors (NYSE:OHI) and Welltower (NYSE:WELL)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	N/A	N/A	N/A	$2.80	16.47
Welltower	N/A	N/A	N/A	$2.31	98.42

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.

Analyst Ratings

This is a summary of current ratings and price targets for Omega Healthcare Investors and Welltower, as provided 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 price target of $49.93, indicating a potential upside of 8.28%. Welltower has a consensus price target of $255.76, indicating a potential upside of 12.49%. Given Welltower’s stronger consensus rating and higher probable upside, analysts clearly believe Welltower is more favorable than Omega Healthcare Investors.

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	N/A	N/A	N/A
Welltower	N/A	N/A	N/A

Insider and Institutional Ownership

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

Summary

Welltower beats Omega Healthcare Investors on 5 of the 7 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.