Welltower (NYSE:WELL) versus Kimco Realty (NYSE:KIM) Head-To-Head Review

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

Dividends

Kimco Realty pays an annual dividend of $1.00 per share and has a dividend yield of 4.1%. Welltower pays an annual dividend of $2.68 per share and has a dividend yield of 2.1%. 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. 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.

Profitability

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

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

Analyst Recommendations

This is a breakdown of current recommendations for Kimco Realty and Welltower, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimco Realty	0	9	5	2	2.56
Welltower	0	4	7	1	2.75

Kimco Realty currently has a consensus target price of $24.70, suggesting a potential upside of 0.37%. Welltower has a consensus target price of $120.77, suggesting a potential downside of 6.46%. Given Kimco Realty’s higher probable upside, research analysts clearly believe Kimco Realty is more favorable than Welltower.

Institutional and Insider Ownership

89.3% of Kimco Realty shares are held by institutional investors. Comparatively, 94.8% of Welltower shares are held by institutional investors. 2.2% of Kimco Realty shares are held by insiders. Comparatively, 0.1% of Welltower shares are held 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.

Risk & Volatility

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimco Realty	$1.78 billion	9.30	$654.27 million	$0.55	44.75
Welltower	$7.35 billion	10.94	$340.09 million	$1.52	84.95

Kimco Realty has higher earnings, but lower revenue 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.

Summary

Welltower beats Kimco Realty on 9 of the 17 factors compared between the two stocks.

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.

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.