Physicians Realty Trust (NYSE: DOC) and Care Capital Properties (NYSE:CCP) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Risk & Volatility
Physicians Realty Trust has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Care Capital Properties has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Physicians Realty Trust and Care Capital Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Physicians Realty Trust||0||4||9||0||2.69|
|Care Capital Properties||0||3||0||0||2.00|
Physicians Realty Trust presently has a consensus price target of $20.54, suggesting a potential upside of 16.38%. Care Capital Properties has a consensus price target of $22.50, suggesting a potential downside of 5.38%. Given Physicians Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Physicians Realty Trust is more favorable than Care Capital Properties.
Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 5.2%. Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.6%. Physicians Realty Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Care Capital Properties pays out 121.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Care Capital Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Physicians Realty Trust and Care Capital Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Physicians Realty Trust||$296.22 million||9.38||$195.49 million||$0.23||76.74|
|Care Capital Properties||N/A||N/A||N/A||$1.88||12.65|
Physicians Realty Trust has higher revenue and earnings than Care Capital Properties. Care Capital Properties is trading at a lower price-to-earnings ratio than Physicians Realty Trust, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.2% of Physicians Realty Trust shares are owned by institutional investors. Comparatively, 88.9% of Care Capital Properties shares are owned by institutional investors. 0.5% of Physicians Realty Trust shares are owned by company insiders. Comparatively, 1.7% of Care Capital Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Physicians Realty Trust and Care Capital Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Physicians Realty Trust||11.51%||1.75%||1.10%|
|Care Capital Properties||109.47%||40.07%||16.26%|
Care Capital Properties beats Physicians Realty Trust on 7 of the 13 factors compared between the two stocks.
Physicians Realty Trust Company Profile
Physicians Realty Trust (the Trust) is a real estate investment trust. Physicians Realty L.P. is the operating partnership of the Trust. The Trust and its operating partnership are engaged in acquiring, developing, owning and managing healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. As of December 31, 2016, the Company’s portfolio consisted of 246 properties located in 29 states with approximately 10,883,601 net leasable square feet. The Company invests in real estate that is integral to providing healthcare services. The Company focuses its investment activity on various types of healthcare properties, such as medical office buildings; outpatient treatment and diagnostic facilities; physician group practice clinics; ambulatory surgery centers, and specialty hospitals and treatment centers. Its properties include Arrowhead Commons, Aurora Medical Office Building, Decatur Medical Office Building and El Paso Medical Office Building.
Care Capital Properties Company Profile
Care Capital Properties, Inc. is a self-administered, self-managed real estate investment trust with a diversified portfolio of skilled nursing facilities (SNFs) and other healthcare assets operated by private regional and local care providers. The Company leases its properties to unaffiliated tenants under long-term triple-net leases, pursuant to which the tenants are obligated to pay all property-related expenses, including maintenance, utilities, repairs and taxes. It also manages a small portfolio of secured and unsecured loans, made primarily to its SNF operators and other post-acute care providers. As of December 31, 2016, its portfolio consisted of 345 properties operated by 38 private regional and local care providers, spread across 36 states and containing a total of approximately 38,000 beds/units. It conducts all of its operations through its operating partnership, Care Capital Properties, LP, and its subsidiaries.
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