Comprehensive Stock Comparison
Compare Healthcare Realty Trust Incorporated (HR) vs Welltower Inc. (WELL) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | WELL | 38.0% revenue growth vs HR's -8.9% |
| Value | HR | Better valuation composite |
| Quality / Margins | WELL | 8.6% net margin vs HR's -31.0% |
| Stability / Safety | HR | Beta 0.27 vs WELL's 0.29, lower leverage |
| Dividends | HR | 6.0% yield; WELL pays no meaningful dividend |
| Momentum (1Y) | WELL | +36.8% vs HR's +15.5% |
| Efficiency (ROA) | WELL | 1.4% ROA vs HR's -3.7%, ROIC 0.9% vs 6.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Healthcare Realty Trust is a real estate investment trust that owns and operates outpatient medical facilities across the United States. It generates revenue primarily through property leasing—collecting rent from healthcare providers like medical groups and hospital systems—with nearly all income coming from rental payments. The company's competitive advantage lies in its specialized focus on outpatient healthcare real estate—a defensive sector with stable demand—and its national portfolio scale that creates operational efficiencies.
Welltower is a healthcare-focused real estate investment trust that owns and invests in seniors housing communities, post-acute care facilities, and outpatient medical properties. It generates revenue primarily through rental income from its healthcare real estate portfolio — with seniors housing contributing roughly 60% of net operating income, outpatient medical properties about 25%, and post-acute care facilities the remainder. The company's competitive advantage lies in its scale and strategic partnerships with leading healthcare operators, creating a diversified portfolio concentrated in high-growth markets across the U.S., Canada, and the U.K.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
HR leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). WELL leads in 2 (Total Returns, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
WELL is the larger business by revenue, generating $10.8B annually — 9.1x HR's $1.2B. WELL is the more profitable business, keeping 8.6% of every revenue dollar as net income compared to HR's -31.0%. On growth, WELL holds the edge at +46.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HRHealthcare Realty… | WELLWelltower Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.2B | $10.8B |
| EBITDAEarnings before interest/tax | $706M | $2.6B |
| Net IncomeAfter-tax profit | -$367M | $934M |
| Free Cash FlowCash after capex | $219M | $2.1B |
| Gross MarginGross profit ÷ Revenue | +61.8% | +20.9% |
| Operating MarginEBIT ÷ Revenue | +5.2% | +4.9% |
| Net MarginNet income ÷ Revenue | -31.0% | +8.6% |
| FCF MarginFCF ÷ Revenue | +18.5% | +19.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | -5.6% | +46.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +34.6% | -26.3% |
Valuation Metrics
On an enterprise value basis, HR's 5.7x EV/EBITDA is more attractive than WELL's 54.4x.
| Metric | HRHealthcare Realty… | WELLWelltower Inc. |
|---|---|---|
| Market CapShares × price | $6.5B | $144.3B |
| Enterprise ValueMkt cap + debt − cash | $6.7B | $142.0B |
| Trailing P/EPrice ÷ TTM EPS | -25.99x | 149.01x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 73.28x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 5.68x | 54.40x |
| Price / SalesMarket cap ÷ Revenue | 5.70x | 13.31x |
| Price / BookPrice ÷ Book value/share | 1.38x | 3.26x |
| Price / FCFMarket cap ÷ FCF | 14.19x | 50.06x |
Profitability & Efficiency
WELL delivers a 2.2% return on equity — every $100 of shareholder capital generates $2 in annual profit, vs $-8 for HR. HR carries lower financial leverage with a 0.05x debt-to-equity ratio, signaling a more conservative balance sheet compared to WELL's 0.07x. On the Piotroski fundamental quality scale (0–9), HR scores 6/9 vs WELL's 5/9, reflecting solid financial health.
| Metric | HRHealthcare Realty… | WELLWelltower Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -7.7% | +2.2% |
| ROA (TTM)Return on assets | -3.7% | +1.4% |
| ROICReturn on invested capital | +6.1% | +0.9% |
| ROCEReturn on capital employed | +6.3% | +0.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.05x | 0.07x |
| Net DebtTotal debt minus cash | $210M | -$2.2B |
| Cash & Equiv.Liquid assets | $26M | $5.0B |
| Total DebtShort + long-term debt | $236M | $2.8B |
| Interest CoverageEBIT ÷ Interest expense | — | 0.81x |
Total Returns (with DRIP)
A $10,000 investment in WELL five years ago would be worth $32,119 today (with dividends reinvested), compared to $10,501 for HR. Over the past 12 months, WELL leads with a +36.8% total return vs HR's +15.5%. The 3-year compound annual growth rate (CAGR) favors WELL at 42.6% vs HR's 4.5% — a key indicator of consistent wealth creation.
| Metric | HRHealthcare Realty… | WELLWelltower Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +10.3% | +11.2% |
| 1-Year ReturnPast 12 months | +15.5% | +36.8% |
| 3-Year ReturnCumulative with dividends | +14.2% | +190.2% |
| 5-Year ReturnCumulative with dividends | +5.0% | +221.2% |
| 10-Year ReturnCumulative with dividends | +48.2% | +270.5% |
| CAGR (3Y)Annualised 3-year return | +4.5% | +42.6% |
Risk & Volatility
HR is the less volatile stock with a 0.27 beta — it tends to amplify market swings less than WELL's 0.29 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | HRHealthcare Realty… | WELLWelltower Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.27x | 0.29x |
| 52-Week HighHighest price in past year | $18.97 | $215.56 |
| 52-Week LowLowest price in past year | $14.09 | $130.29 |
| % of 52W HighCurrent price vs 52-week peak | +97.3% | +96.1% |
| RSI (14)Momentum oscillator 0–100 | 75.4 | 69.0 |
| Avg Volume (50D)Average daily shares traded | 3.0M | 2.5M |
Analyst Outlook
Wall Street rates HR as "Hold" and WELL as "Buy". Consensus price targets imply 6.9% upside for WELL (target: $221) vs 6.6% for HR (target: $20). HR is the only dividend payer here at 6.00% yield — a key consideration for income-focused portfolios.
| Metric | HRHealthcare Realty… | WELLWelltower Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $19.67 | $221.45 |
| # AnalystsCovering analysts | 29 | 34 |
| Dividend YieldAnnual dividend ÷ price | +6.0% | — |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | $1.11 | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Healthcare Realty T… (HR) | 100 | 46.83 | -53.2% |
| Welltower Inc. (WELL) | 100 | 249.04 | +149.0% |
Welltower Inc. (WELL) returned +221% over 5 years vs Healthcare Realty T… (HR)'s +5%. A $10,000 investment in WELL 5 years ago would be worth $32,119 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Healthcare Realty T… (HR) | $412M | $1.1B | +176.3% |
| Welltower Inc. (WELL) | $4.3B | $10.8B | +154.9% |
Healthcare Realty Trust Incorporated's revenue grew from $412M (2016) to $1.1B (2025) — a 12.0% CAGR. Welltower Inc.'s revenue grew from $4.3B (2016) to $10.8B (2025) — a 11.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Healthcare Realty T… (HR) | 20.8% | -21.6% | -204.1% |
| Welltower Inc. (WELL) | 25.4% | 8.6% | -65.9% |
Healthcare Realty Trust Incorporated's net margin went from 21% (2016) to -22% (2025). Welltower Inc.'s net margin went from 25% (2016) to 9% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Healthcare Realty T… (HR) | 178.4 | 341.8 | +91.6% |
| Welltower Inc. (WELL) | 50.6 | 133.5 | +163.8% |
Healthcare Realty Trust Incorporated has traded in a 50x–342x P/E range over 3 years; current trailing P/E is ~-26x. Welltower Inc. has traded in a 27x–219x P/E range over 9 years; current trailing P/E is ~149x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Healthcare Realty T… (HR) | 0.78 | -0.71 | -191.0% |
| Welltower Inc. (WELL) | 2.81 | 1.39 | -50.5% |
Healthcare Realty Trust Incorporated's EPS grew from $0.78 (2016) to $-0.71 (2025) — a NaN% CAGR. Welltower Inc.'s EPS grew from $2.81 (2016) to $1.39 (2025) — a -8% CAGR.
Chart 6Free Cash Flow — 5 Years
Healthcare Realty Trust Incorporated generated $457M FCF in 2025 (+246% vs 2021). Welltower Inc. generated $3B FCF in 2025 (+129% vs 2021).
HR vs WELL: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is HR or WELL a better buy right now?
Welltower Inc. (WELL) offers the better valuation at 149.0x trailing P/E (73.3x forward), making it the more compelling value choice. Analysts rate Welltower Inc. (WELL) a "Buy" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — HR or WELL?
Over the past 5 years, Welltower Inc. (WELL) delivered a total return of +221.2%, compared to +5.0% for Healthcare Realty Trust Incorporated (HR). A $10,000 investment in WELL five years ago would be worth approximately $32K today (assuming dividends reinvested). Over 10 years, the gap is even starker: WELL returned +270.5% versus HR's +48.2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — HR or WELL?
By beta (market sensitivity over 5 years), Healthcare Realty Trust Incorporated (HR) is the lower-risk stock at 0.27β versus Welltower Inc.'s 0.29β — meaning WELL is approximately 8% more volatile than HR relative to the S&P 500. On balance sheet safety, Healthcare Realty Trust Incorporated (HR) carries a lower debt/equity ratio of 5% versus 7% for Welltower Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — HR or WELL?
Welltower Inc. (WELL) is the more profitable company, earning 8.6% net margin versus -21.6% for Healthcare Realty Trust Incorporated — meaning it keeps 8.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HR leads at 54.0% versus 4.9% for WELL. At the gross margin level — before operating expenses — HR leads at 60.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is HR or WELL more undervalued right now?
Analyst consensus price targets imply the most upside for WELL: 6.9% to $221.45.
06Which pays a better dividend — HR or WELL?
In this comparison, HR (6.0% yield) pays a dividend. WELL does not pay a meaningful dividend and should not be held primarily for income.
07Is HR or WELL better for a retirement portfolio?
For long-horizon retirement investors, Healthcare Realty Trust Incorporated (HR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.27), 6.0% yield). Both have compounded well over 10 years (HR: +48.2%, WELL: +270.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between HR and WELL?
Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: HR is a small-cap income-oriented stock; WELL is a mid-cap quality compounder stock. HR pays a dividend while WELL does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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