HCP (NYSE:HCP) vs. Weyerhaeuser (NYSE:WY) Head to Head Analysis

HCP (NYSE:HCP) and Weyerhaeuser (NYSE:WY) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Valuation & Earnings

This table compares HCP and Weyerhaeuser’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HCP $1.85 billion 8.43 $1.06 billion $1.82 17.90
Weyerhaeuser $7.48 billion 2.54 $748.00 million $1.18 21.64

HCP has higher earnings, but lower revenue than Weyerhaeuser. HCP is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.

Dividends

HCP pays an annual dividend of $1.48 per share and has a dividend yield of 4.5%. Weyerhaeuser pays an annual dividend of $1.36 per share and has a dividend yield of 5.3%. HCP pays out 81.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser has increased its dividend for 7 consecutive years. Weyerhaeuser is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

95.5% of HCP shares are held by institutional investors. Comparatively, 76.3% of Weyerhaeuser shares are held by institutional investors. 0.1% of HCP shares are held by company insiders. Comparatively, 0.4% of Weyerhaeuser shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

HCP has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for HCP and Weyerhaeuser, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HCP 0 3 10 0 2.77
Weyerhaeuser 0 2 8 0 2.80

HCP currently has a consensus price target of $30.41, indicating a potential downside of 6.63%. Weyerhaeuser has a consensus price target of $32.67, indicating a potential upside of 27.90%. Given Weyerhaeuser’s stronger consensus rating and higher possible upside, analysts clearly believe Weyerhaeuser is more favorable than HCP.

Profitability

This table compares HCP and Weyerhaeuser’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HCP 59.96% 18.05% 8.29%
Weyerhaeuser 2.62% 7.69% 3.99%

Summary

HCP beats Weyerhaeuser on 9 of the 17 factors compared between the two stocks.

HCP Company Profile

HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests in real estate serving the healthcare industry in the United States. HCP owns a large-scale portfolio primarily diversified across life science, medical office and senior housing. Recognized as a global leader in sustainability, HCP has been a publicly-traded company since 1985 and was the first healthcare REIT selected to the S&P 500 index.

Weyerhaeuser Company Profile

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control 12.2 million acres of timberlands in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products. Our company is a real estate investment trust. In 2018, we generated $7.5 billion in net sales and employed approximately 9,300 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY.

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