ARE vs. VTR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARE and VTR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both ARE and VTR are Real Estate Investment Trusts (REITs). These entities are required to distribute the majority of their taxable income to shareholders, often resulting in higher dividend yields.
| Symbol | ARE | VTR |
|---|---|---|
| Company Name | Alexandria Real Estate Equities, Inc. | Ventas, Inc. |
| Country | United States | United States |
| GICS Sector | Real Estate | Real Estate |
| GICS Industry | Office REITs | Health Care REITs |
| Market Capitalization | 8.98 billion USD | 37.01 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | May 28, 1997 | May 5, 1997 |
| Security Type | REIT | REIT |
Historical Performance
This chart compares the performance of ARE and VTR by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | ARE | VTR |
|---|---|---|
| 5-Day Price Return | -3.63% | 2.67% |
| 13-Week Price Return | -31.28% | 15.10% |
| 26-Week Price Return | -27.78% | 21.53% |
| 52-Week Price Return | -52.04% | 21.02% |
| Month-to-Date Return | -10.19% | 5.71% |
| Year-to-Date Return | -46.40% | 32.45% |
| 10-Day Avg. Volume | 2.69M | 3.16M |
| 3-Month Avg. Volume | 1.95M | 2.75M |
| 3-Month Volatility | 49.66% | 19.80% |
| Beta | 1.33 | 0.80 |
Profitability
Return on Equity (TTM)
ARE
-2.38%
Office REITs Industry
- Max
- 10.01%
- Q3
- 6.77%
- Median
- 5.21%
- Q1
- 1.77%
- Min
- -3.82%
ARE has a negative Return on Equity of -2.38%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
VTR
2.01%
Health Care REITs Industry
- Max
- 11.16%
- Q3
- 7.80%
- Median
- 6.33%
- Q1
- 2.19%
- Min
- -0.47%
VTR’s Return on Equity of 2.01% is in the lower quartile for the Health Care REITs industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Net Profit Margin (TTM)
ARE
-12.89%
Office REITs Industry
- Max
- 85.58%
- Q3
- 47.99%
- Median
- 43.80%
- Q1
- 13.41%
- Min
- -12.89%
In the Office REITs industry, Net Profit Margin is often not the primary profitability metric.
VTR
4.28%
Health Care REITs Industry
- Max
- 90.32%
- Q3
- 52.32%
- Median
- 35.63%
- Q1
- 5.63%
- Min
- -30.51%
In the Health Care REITs industry, Net Profit Margin is often not the primary profitability metric.
Operating Profit Margin (TTM)
ARE
0.28%
Office REITs Industry
- Max
- 115.21%
- Q3
- 75.07%
- Median
- 39.18%
- Q1
- 22.39%
- Min
- 0.28%
In the Office REITs industry, Operating Profit Margin is often not the primary measure of operational efficiency.
VTR
14.21%
Health Care REITs Industry
- Max
- 92.65%
- Q3
- 61.90%
- Median
- 39.05%
- Q1
- 15.52%
- Min
- -23.45%
In the Health Care REITs industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | ARE | VTR |
|---|---|---|
| Return on Equity (TTM) | -2.38% | 2.01% |
| Return on Assets (TTM) | -1.09% | 0.90% |
| Net Profit Margin (TTM) | -12.89% | 4.28% |
| Operating Profit Margin (TTM) | 0.28% | 14.21% |
| Gross Profit Margin (TTM) | 70.81% | 41.97% |
Financial Strength
Current Ratio (MRQ)
ARE
0.41
Office REITs Industry
- Max
- 1.67
- Q3
- 1.07
- Median
- 0.62
- Q1
- 0.40
- Min
- 0.14
ARE’s Current Ratio of 0.41 aligns with the median group of the Office REITs industry, indicating that its short-term liquidity is in line with its sector peers.
VTR
0.17
Health Care REITs Industry
- Max
- 4.05
- Q3
- 2.38
- Median
- 1.11
- Q1
- 0.18
- Min
- 0.11
VTR’s Current Ratio of 0.17 falls into the lower quartile for the Health Care REITs industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
ARE
0.82
Office REITs Industry
- Max
- 1.62
- Q3
- 1.36
- Median
- 0.87
- Q1
- 0.79
- Min
- 0.44
ARE’s Debt-to-Equity Ratio of 0.82 is typical for the Office REITs industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
VTR
0.99
Health Care REITs Industry
- Max
- 1.20
- Q3
- 0.99
- Median
- 0.93
- Q1
- 0.71
- Min
- 0.44
VTR’s Debt-to-Equity Ratio of 0.99 is typical for the Health Care REITs industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
ARE
2.75
Office REITs Industry
- Max
- 3.98
- Q3
- 3.37
- Median
- 2.01
- Q1
- 1.33
- Min
- 0.20
ARE’s Interest Coverage Ratio of 2.75 is positioned comfortably within the norm for the Office REITs industry, indicating a standard and healthy capacity to cover its interest payments.
VTR
1.08
Health Care REITs Industry
- Max
- 5.10
- Q3
- 2.88
- Median
- 1.84
- Q1
- 1.17
- Min
- 0.43
In the lower quartile for the Health Care REITs industry, VTR’s Interest Coverage Ratio of 1.08 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | ARE | VTR |
|---|---|---|
| Current Ratio (MRQ) | 0.41 | 0.17 |
| Quick Ratio (MRQ) | 0.41 | 0.17 |
| Debt-to-Equity Ratio (MRQ) | 0.82 | 0.99 |
| Interest Coverage Ratio (TTM) | 2.75 | 1.08 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ARE
10.09%
Office REITs Industry
- Max
- 10.09%
- Q3
- 6.32%
- Median
- 5.45%
- Q1
- 3.78%
- Min
- 2.02%
With a Dividend Yield of 10.09%, ARE offers a more attractive income stream than most of its peers in the Office REITs industry, signaling a strong commitment to shareholder returns.
VTR
2.34%
Health Care REITs Industry
- Max
- 7.97%
- Q3
- 6.38%
- Median
- 5.12%
- Q1
- 3.34%
- Min
- 1.39%
VTR’s Dividend Yield of 2.34% is in the lower quartile for the Health Care REITs industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
ARE
174.29%
Office REITs Industry
- Max
- 277.06%
- Q3
- 172.99%
- Median
- 93.19%
- Q1
- 80.70%
- Min
- 22.44%
ARE’s Dividend Payout Ratio of 174.29% is in the upper quartile for the Office REITs industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
VTR
345.92%
Health Care REITs Industry
- Max
- 345.92%
- Q3
- 204.57%
- Median
- 127.36%
- Q1
- 91.24%
- Min
- 0.00%
VTR’s Dividend Payout Ratio of 345.92% is in the upper quartile for the Health Care REITs industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ARE | VTR |
|---|---|---|
| Dividend Yield (TTM) | 10.09% | 2.34% |
| Dividend Payout Ratio (TTM) | 174.29% | 345.92% |
Valuation
Price-to-Earnings Ratio (TTM)
ARE
--
Office REITs Industry
- Max
- 75.52
- Q3
- 39.54
- Median
- 24.79
- Q1
- 14.78
- Min
- 5.56
The P/E Ratio is often not the primary metric for valuation in the Office REITs industry.
VTR
147.92
Health Care REITs Industry
- Max
- 31.15
- Q3
- 30.90
- Median
- 25.71
- Q1
- 19.03
- Min
- 9.31
The P/E Ratio is often not the primary metric for valuation in the Health Care REITs industry.
Price-to-Sales Ratio (TTM)
ARE
2.83
Office REITs Industry
- Max
- 15.44
- Q3
- 9.11
- Median
- 6.86
- Q1
- 3.90
- Min
- 1.99
In the lower quartile for the Office REITs industry, ARE’s P/S Ratio of 2.83 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
VTR
6.34
Health Care REITs Industry
- Max
- 18.70
- Q3
- 12.58
- Median
- 7.37
- Q1
- 5.24
- Min
- 3.23
VTR’s P/S Ratio of 6.34 aligns with the market consensus for the Health Care REITs industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
ARE
0.87
Office REITs Industry
- Max
- 2.35
- Q3
- 1.42
- Median
- 1.05
- Q1
- 0.72
- Min
- 0.65
ARE’s P/B Ratio of 0.87 is within the conventional range for the Office REITs industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
VTR
2.50
Health Care REITs Industry
- Max
- 3.07
- Q3
- 2.14
- Median
- 1.63
- Q1
- 0.92
- Min
- 0.54
VTR’s P/B Ratio of 2.50 is in the upper tier for the Health Care REITs industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ARE | VTR |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 147.92 |
| Price-to-Sales Ratio (TTM) | 2.83 | 6.34 |
| Price-to-Book Ratio (MRQ) | 0.87 | 2.50 |
| Price-to-Free Cash Flow Ratio (TTM) | 360.39 | 36.37 |