Comparing PotlatchDeltic (NASDAQ:PCH) and Ventas (NYSE:VTR)

PotlatchDeltic (NASDAQ:PCH) and Ventas (NYSE:VTR) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Risk & Volatility

PotlatchDeltic has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Ventas has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Dividends

PotlatchDeltic pays an annual dividend of $1.80 per share and has a dividend yield of 4.2%. Ventas pays an annual dividend of $1.80 per share and has a dividend yield of 4.3%. PotlatchDeltic pays out 233.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ventas pays out -1,636.2% of its earnings in the form of a dividend. Ventas is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares PotlatchDeltic and Ventas’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PotlatchDeltic	$1.02 billion	3.29	$62.10 million	$0.77	55.09
Ventas	$4.50 billion	3.74	-$40.97 million	($0.11)	-378.78

PotlatchDeltic has higher earnings, but lower revenue than Ventas. Ventas is trading at a lower price-to-earnings ratio than PotlatchDeltic, 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 PotlatchDeltic and Ventas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PotlatchDeltic	0	3	0	0	2.00
Ventas	0	3	9	0	2.75

PotlatchDeltic currently has a consensus target price of $51.33, suggesting a potential upside of 21.01%. Ventas has a consensus target price of $51.54, suggesting a potential upside of 23.68%. Given Ventas’ stronger consensus rating and higher probable upside, analysts clearly believe Ventas is more favorable than PotlatchDeltic.

Insider and Institutional Ownership

86.1% of PotlatchDeltic shares are held by institutional investors. Comparatively, 94.2% of Ventas shares are held by institutional investors. 1.0% of PotlatchDeltic shares are held by insiders. Comparatively, 1.0% of Ventas shares are held by 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.

Profitability

This table compares PotlatchDeltic and Ventas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PotlatchDeltic	6.06%	1.58%	1.00%
Ventas	-0.91%	-0.41%	-0.17%

Summary

Ventas beats PotlatchDeltic on 9 of the 15 factors compared between the two stocks.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance.

About Ventas

Ventas Inc. (NYSE: VTR) is a leading S&P 500 real estate investment trust focused on delivering strong, sustainable shareholder returns by enabling exceptional environments that benefit a large and growing aging population. The Company's growth is fueled by its senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas leverages its unmatched operational expertise, data-driven insights from its Ventas Operational InsightsTM platform, extensive relationships and strong financial position to achieve its goal of delivering outsized performance across approximately 1,400 properties. The Ventas portfolio is composed of senior housing communities, outpatient medical buildings, research centers and healthcare facilities in North America and the United Kingdom. The Company benefits from a seasoned team of talented professionals who share a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives.