Ventas (NYSE:VTR) vs. Franklin Street Properties (NYSE:FSP) Head to Head Contrast

Franklin Street Properties (NYSE:FSP) and Ventas (NYSE:VTR) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Dividends

Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 2.6%. Ventas pays an annual dividend of $1.92 per share and has a dividend yield of 2.9%. Franklin Street Properties pays out -6.3% of its earnings in the form of a dividend. Ventas pays out 581.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Franklin Street Properties and Ventas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Street Properties	-43.90%	-7.79%	-5.30%
Ventas	1.65%	0.82%	0.32%

Volatility and Risk

Franklin Street Properties has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Ventas has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Insider & Institutional Ownership

61.4% of Franklin Street Properties shares are owned by institutional investors. Comparatively, 94.2% of Ventas shares are owned by institutional investors. 9.6% of Franklin Street Properties shares are owned by company insiders. Comparatively, 0.8% of Ventas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Franklin Street Properties and Ventas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Street Properties	$115.99 million	1.35	-$52.72 million	($0.64)	-2.36
Ventas	$4.92 billion	5.92	$81.15 million	$0.33	201.88

Ventas has higher revenue and earnings than Franklin Street Properties. Franklin Street Properties is trading at a lower price-to-earnings ratio than Ventas, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Franklin Street Properties and Ventas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Street Properties	0	0	0	0	0.00
Ventas	0	3	7	2	2.92

Ventas has a consensus target price of $72.90, suggesting a potential upside of 9.43%. Given Ventas’ stronger consensus rating and higher probable upside, analysts plainly believe Ventas is more favorable than Franklin Street Properties.

Summary

Ventas beats Franklin Street Properties on 15 of the 17 factors compared between the two stocks.

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.

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.