Healthpeak Properties (NYSE:DOC – Get Free Report) and Essex Property Trust (NYSE:ESS – Get Free Report) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Profitability
This table compares Healthpeak Properties and Essex Property Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Healthpeak Properties | 12.10% | 3.53% | 1.62% |
Essex Property Trust | 31.55% | 9.72% | 4.36% |
Dividends
Healthpeak Properties pays an annual dividend of $1.20 per share and has a dividend yield of 5.3%. Essex Property Trust pays an annual dividend of $9.80 per share and has a dividend yield of 3.3%. Healthpeak Properties pays out 255.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essex Property Trust pays out 114.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essex Property Trust has increased its dividend for 30 consecutive years.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Healthpeak Properties | 0 | 5 | 10 | 1 | 2.75 |
Essex Property Trust | 1 | 13 | 6 | 0 | 2.25 |
Healthpeak Properties presently has a consensus target price of $22.86, indicating a potential upside of 1.32%. Essex Property Trust has a consensus target price of $293.40, indicating a potential downside of 1.06%. Given Healthpeak Properties’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Healthpeak Properties is more favorable than Essex Property Trust.
Risk & Volatility
Healthpeak Properties has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Essex Property Trust has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
Institutional and Insider Ownership
93.6% of Healthpeak Properties shares are owned by institutional investors. Comparatively, 96.5% of Essex Property Trust shares are owned by institutional investors. 0.3% of Healthpeak Properties shares are owned by company insiders. Comparatively, 3.9% of Essex Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Healthpeak Properties and Essex Property Trust”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Healthpeak Properties | $2.18 billion | 7.23 | $306.01 million | $0.47 | 48.00 |
Essex Property Trust | $1.67 billion | 11.42 | $405.83 million | $8.56 | 34.64 |
Essex Property Trust has lower revenue, but higher earnings than Healthpeak Properties. Essex Property Trust is trading at a lower price-to-earnings ratio than Healthpeak Properties, indicating that it is currently the more affordable of the two stocks.
Summary
Essex Property Trust beats Healthpeak Properties on 10 of the 18 factors compared between the two stocks.
About Healthpeak Properties
Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.
About Essex Property Trust
Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 252 apartment communities comprising approximately 62,000 apartment homes with an additional property in active development.
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