Comprehensive Stock Comparison
Compare Welltower Inc. (WELL) vs Diversified Healthcare Trust (DHC) 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 DHC's 2.8% |
| Quality / Margins | WELL | 8.6% net margin vs DHC's -18.6% |
| Stability / Safety | WELL | Beta 0.29 vs DHC's 0.75 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | DHC | +140.3% vs WELL's +36.8% |
| Efficiency (ROA) | WELL | 1.4% ROA vs DHC's -6.6%, ROIC 0.9% vs -0.9% |
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
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.
Diversified Healthcare Trust is a real estate investment trust that owns and operates healthcare-related properties including medical office buildings, senior living communities, and life science facilities. It generates revenue primarily through property rental income — with medical office properties contributing roughly 60% of net operating income and senior living communities about 40% — along with management fees from its operating partner. The company's competitive advantage lies in its specialized healthcare real estate portfolio and its long-term management relationship with The RMR Group, which provides operational expertise in the healthcare property sector.
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
DHC leads in 3 of 6 categories (Valuation Metrics, Total Returns). WELL leads in 2 (Financial Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
WELL is the larger business by revenue, generating $10.8B annually — 7.0x DHC's $1.5B. WELL is the more profitable business, keeping 8.6% of every revenue dollar as net income compared to DHC's -18.6%. On growth, WELL holds the edge at +46.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | WELLWelltower Inc. | DHCDiversified Healt… |
|---|---|---|
| RevenueTrailing 12 months | $10.8B | $1.5B |
| EBITDAEarnings before interest/tax | $2.6B | $292M |
| Net IncomeAfter-tax profit | $934M | -$286M |
| Free Cash FlowCash after capex | $2.1B | -$16M |
| Gross MarginGross profit ÷ Revenue | +20.9% | -16.0% |
| Operating MarginEBIT ÷ Revenue | +4.9% | +2.0% |
| Net MarginNet income ÷ Revenue | +8.6% | -18.6% |
| FCF MarginFCF ÷ Revenue | +19.4% | -1.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +46.3% | -0.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -26.3% | +75.5% |
Valuation Metrics
On an enterprise value basis, DHC's 6.9x EV/EBITDA is more attractive than WELL's 54.4x.
| Metric | WELLWelltower Inc. | DHCDiversified Healt… |
|---|---|---|
| Market CapShares × price | $144.3B | $1.6B |
| Enterprise ValueMkt cap + debt − cash | $142.0B | $1.5B |
| Trailing P/EPrice ÷ TTM EPS | 149.01x | -5.68x |
| Forward P/EPrice ÷ next-FY EPS est. | 73.28x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 54.40x | 6.88x |
| Price / SalesMarket cap ÷ Revenue | 13.31x | 1.06x |
| Price / BookPrice ÷ Book value/share | 3.26x | 0.98x |
| Price / FCFMarket cap ÷ FCF | 50.06x | — |
Profitability & Efficiency
WELL delivers a 2.2% return on equity — every $100 of shareholder capital generates $2 in annual profit, vs $-17 for DHC. On the Piotroski fundamental quality scale (0–9), WELL scores 5/9 vs DHC's 3/9, reflecting solid financial health.
| Metric | WELLWelltower Inc. | DHCDiversified Healt… |
|---|---|---|
| ROE (TTM)Return on equity | +2.2% | -17.2% |
| ROA (TTM)Return on assets | +1.4% | -6.6% |
| ROICReturn on invested capital | +0.9% | -0.9% |
| ROCEReturn on capital employed | +0.9% | -0.8% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 3 |
| Debt / EquityFinancial leverage | 0.07x | — |
| Net DebtTotal debt minus cash | -$2.2B | -$105M |
| Cash & Equiv.Liquid assets | $5.0B | $105M |
| Total DebtShort + long-term debt | $2.8B | $0 |
| Interest CoverageEBIT ÷ Interest expense | 0.81x | -0.19x |
Total Returns (with DRIP)
A $10,000 investment in WELL five years ago would be worth $32,119 today (with dividends reinvested), compared to $14,904 for DHC. Over the past 12 months, DHC leads with a +140.3% total return vs WELL's +36.8%. The 3-year compound annual growth rate (CAGR) favors DHC at 91.5% vs WELL's 42.6% — a key indicator of consistent wealth creation.
| Metric | WELLWelltower Inc. | DHCDiversified Healt… |
|---|---|---|
| YTD ReturnYear-to-date | +11.2% | +35.9% |
| 1-Year ReturnPast 12 months | +36.8% | +140.3% |
| 3-Year ReturnCumulative with dividends | +190.2% | +602.0% |
| 5-Year ReturnCumulative with dividends | +221.2% | +49.0% |
| 10-Year ReturnCumulative with dividends | +270.5% | -21.4% |
| CAGR (3Y)Annualised 3-year return | +42.6% | +91.5% |
Risk & Volatility
WELL is the less volatile stock with a 0.29 beta — it tends to amplify market swings less than DHC's 0.75 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | WELLWelltower Inc. | DHCDiversified Healt… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.29x | 0.75x |
| 52-Week HighHighest price in past year | $215.56 | $6.85 |
| 52-Week LowLowest price in past year | $130.29 | $2.00 |
| % of 52W HighCurrent price vs 52-week peak | +96.1% | +98.7% |
| RSI (14)Momentum oscillator 0–100 | 69.0 | 68.1 |
| Avg Volume (50D)Average daily shares traded | 2.5M | 1.4M |
Analyst Outlook
Wall Street rates WELL as "Buy" and DHC as "Hold". Consensus price targets imply 6.9% upside for WELL (target: $221) vs -26.0% for DHC (target: $5).
| Metric | WELLWelltower Inc. | DHCDiversified Healt… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $221.45 | $5.00 |
| # AnalystsCovering analysts | 34 | 17 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | 3 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.1% |
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 |
|---|---|---|---|
| Welltower Inc. (WELL) | 100 | 249.04 | +149.0% |
| Diversified Healthc… (DHC) | 100 | 86.39 | -13.6% |
Welltower Inc. (WELL) returned +221% over 5 years vs Diversified Healthc… (DHC)'s +49%. 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 |
|---|---|---|---|
| Welltower Inc. (WELL) | $4.3B | $10.8B | +154.9% |
| Diversified Healthc… (DHC) | $1.1B | $1.5B | +45.4% |
Welltower Inc.'s revenue grew from $4.3B (2016) to $10.8B (2025) — a 11.0% CAGR. Diversified Healthcare Trust's revenue grew from $1.1B (2016) to $1.5B (2025) — a 4.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Welltower Inc. (WELL) | 25.4% | 8.6% | -65.9% |
| Diversified Healthc… (DHC) | 13.4% | -18.6% | -239.2% |
Welltower Inc.'s net margin went from 25% (2016) to 9% (2025). Diversified Healthcare Trust's net margin went from 13% (2016) to -19% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Welltower Inc. (WELL) | 50.6 | 133.5 | +163.8% |
| Diversified Healthc… (DHC) | 30.9 | 4.2 | -86.4% |
Welltower Inc. has traded in a 27x–219x P/E range over 9 years; current trailing P/E is ~149x. Diversified Healthcare Trust has traded in a 4x–31x P/E range over 3 years; current trailing P/E is ~-6x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Welltower Inc. (WELL) | 2.81 | 1.39 | -50.5% |
| Diversified Healthc… (DHC) | 0.6 | -1.19 | -298.3% |
Welltower Inc.'s EPS grew from $2.81 (2016) to $1.39 (2025) — a -8% CAGR. Diversified Healthcare Trust's EPS grew from $0.60 (2016) to $-1.19 (2025) — a NaN% CAGR.
Chart 6Free Cash Flow — 5 Years
Welltower Inc. generated $3B FCF in 2025 (+129% vs 2021). Diversified Healthcare Trust generated $-20M FCF in 2025 (+69% vs 2021).
WELL vs DHC: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is WELL or DHC 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 — WELL or DHC?
Over the past 5 years, Welltower Inc. (WELL) delivered a total return of +221.2%, compared to +49.0% for Diversified Healthcare Trust (DHC). 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 DHC's -21.4%. 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 — WELL or DHC?
By beta (market sensitivity over 5 years), Welltower Inc. (WELL) is the lower-risk stock at 0.29β versus Diversified Healthcare Trust's 0.75β — meaning DHC is approximately 161% more volatile than WELL relative to the S&P 500.
04Which has better profit margins — WELL or DHC?
Welltower Inc. (WELL) is the more profitable company, earning 8.6% net margin versus -18.6% for Diversified Healthcare Trust — meaning it keeps 8.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WELL leads at 4.9% versus -2.6% for DHC. At the gross margin level — before operating expenses — WELL leads at 20.9%, 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 WELL or DHC more undervalued right now?
Analyst consensus price targets imply the most upside for WELL: 6.9% to $221.45.
06Which pays a better dividend — WELL or DHC?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
07Is WELL or DHC better for a retirement portfolio?
For long-horizon retirement investors, Welltower Inc. (WELL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.29), +270.5% 10Y return). Both have compounded well over 10 years (WELL: +270.5%, DHC: -21.4%), 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 WELL and DHC?
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. 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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